majorityowned

Majority-owned describes an asset or entity in which a single owner holds more than half of the voting rights or ownership interest, providing the ability to control the entity’s strategic direction and operations. In corporate contexts, a majority-owned subsidiary is one where the parent company owns a controlling stake, typically over 50%, enabling board representation and decision-making influence.

Control is the key idea behind majority ownership, but it is not determined solely by percentage. While a >50% stake usually confers control, governance can also be affected by contractual rights, preferred shares with enhanced voting, or other arrangements that allow one party to influence key decisions even with a minority of ordinary shares. Conversely, a party may have less than a majority but still exert de facto control under certain circumstances.

In financial reporting, majority-owned subsidiaries are commonly consolidated with the parent’s financial statements under applicable accounting standards (such as IFRS or US GAAP). This process may leave a non-controlling interest to reflect the portion of equity not owned by the parent. The designation “majority-owned” can thus have consequences for earnings attribution, risk exposure, and regulatory or contractual requirements.

The term also applies to other assets, including equity interests in joint ventures, real estate, or intellectual property, where one owner holds a controlling stake. It is distinct from wholly-owned (100%) and minority-owned arrangements, and regulatory definitions of control can vary by jurisdiction.