MAJORITY SHAREHOLDER
A person or an entity who owns at least 51% of a company’s outstanding shares. This can also pertain to one of a small group of shareholders who collectively controls more than 50% of the outstanding shares. Oftentimes, the majority shareholder can be the founder of the corporation or the founder’s descendants, in the case of long-established businesses. The majority shareholder, by the virtue of controlling more than half of the voting interests in the company, has a very strong influence in a company’s business operations and strategic directions.
Majority shareholders may continue to involve themselves in the daily operations of the company, or leave the company management to executives and managers.
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