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CONTROL OF ENTERPRISES

Statistics Directorate    
Definition:
Control over enterprises is generally viewed to be exercised when an individual or group of investors hold more than 50 per cent of the common voting stock of the enterprise or firm.

However, "effective control" may be exercised when the investor(s) holds a large block of voting stock even when it is less than 50 per cent but the remaining shares are widely held by many smaller investors. Control of enterprises may also be exercised through interlocking directorates and inter-corporate ownership links between firms as in the case of conglomerates.

Source Publication:
Glossary of Industrial Organisation Economics and Competition Law, compiled by R. S. Khemani and D. M. Shapiro, commissioned by the Directorate for Financial, Fiscal and Enterprise Affairs, OECD, 1993.

Hyperlink:
http://www.oecd.org/dataoecd/8/61/2376087.pdf

Statistical Theme: Financial statistics

Created on Thursday, January 03, 2002

Last updated on Monday, March 03, 2003