Definition of Working control:
Working control exists when a minority shareholder or multiple minority shareholders unite to take a controlling interest in a corporation. The opportunity for minority shareholders to gain this control is exhibited in corporations where there is no dominant majority (greater than 50%) shareholder. While there are no official benchmarks for defining working control, 20% ownership is often considered large enough to exhibit this level of influence. In this case, companies must list the individual investors with working control on their financial statements. .
Effective control of a firm by a minority shareholder (with less than 50 percent ownership) working in concert with one or more other minority shareholders.
Working control is a situation wherein a minority shareholder or shareholders have enough voting power to influence or determine corporate policy. This exists in corporations with widely dispersed share ownership where no single individual has a majority interest, meaning ownership of 51% or more of the voting shares. An individual shareholder with a 20% stake in a company often controls a large enough position to have working control. Other times, it requires a group of shareholders working in concert to take control. .
Ownership of 51% of a firms voting shares.
Meaning of Working control & Working control Definition