Minority Investors: Everything You Need to Know
Minority investors have a minority interest in a company and they have a percentage of ownership that's significant.3 min read
Minority investors have a minority interest in a company. A minority interest is a percentage of ownership that's significant but doesn't give the holder the right to control the company.
Usually, only the dividends from a minority interest are included on a corporate balance sheet. If the owner has enough shares to influence the company's direction, ordinary income is part of the balance sheet as well. To a parent company, a minority interest is a liability on a balance sheet that indicates the percentage of a subsidiary that the parent company doesn't own, or the portion that's publicly traded.
Protections for Minority Investors