Significant Influence

In finance, the term significant influence describes a situation in which one shareholder owns a large enough share of a company to give them partial control over the company.

Typically, an entity must hold at least 20 percent of shares or more to exercise significant influence over a company.

Companies may be required by law or by stock exchange regulations to list shareholders with significant influence on their financial statements.

When a single family wields significant influence over a company, the company is said to be under significant family influence.

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