What is voting interest?

Voting interest means any stake in a company that entitles the holder of that interest to vote for the election of the board or on other matters affecting the business.

Where have you heard about voting interest?

Unlike a single vote you cast to elect an MP, the number of votes you have as a shareholder corresponds with the number of shares you own. So the more you have, the more powerful you are in influencing corporate decisions.

What you need to know about voting interest.

Ownership of more than 50% of voting shares usually gives the holder a controlling interest, although in special cases control is possible with less than that.

In large public companies, shareholders can exert a significant amount of influence on the business and its policies, although in reality they're usually more concerned with how much profit they'll make. In small private firms, on the other hand, directors often own large blocks of shares. Therefore, minority shareholders generally can’t affect which directors are elected.

Find out more about voting interest.

Read our definition of majority interest for more insight into corporate voting rights.