From Wikipedia, the free encyclopedia
Voting interest in business and accounting is a percentage of voting stock owned. This notion is different from economic interest that refers to a percentage of all the equity issued, including preferred stock, warrants, and so on. Ownership of more than 50% of voting shares gives the right of control and consolidation. In special cases, control is possible without having to own more than 50% of voting stock. For example, if agreed, shareholders may pass control to a chosen one owning much fewer shares.
[edit] Example
Company ABC has issued 1,000,000 ordinary shares and 500,000 preferred shares. Company XYZ buys 700,000 voting shares and 100,000 preferred ones. Therefore, its voting interest is (700,000/1,000,000) = 70.00%, and its economic interest is ((700,000+100,000)/(1,000,000+500,000)) = 53.33%.
