Corporate Governance
Intermediate
Controlling Shareholder
A shareholder with enough voting power, contractual influence, or practical control to shape corporate decisions even without owning all equity.
Why It Matters
Controlling-shareholder analysis shifts corporate governance from manager-shareholder conflict to minority protection, tunneling, related-party transactions, and freeze-out regulation.
Selected Literature
A short list of directly relevant archive entries.
1998
Introductory
Law and Finance
Rafael La Porta, Florencio Lopez-de-Silanes, Andrei Shleifer, and Robert W. Vishny
Journal of Political Economy
2000
Advanced
Investor Protection and Corporate Governance
Rafael La Porta, Florencio Lopez-de-Silanes, Andrei Shleifer, and Robert W. Vishny
Journal of Financial Economics
2008
Intermediate
The Law and Economics of Self-Dealing
Simeon Djankov, Rafael La Porta, Florencio Lopez-de-Silanes, and Andrei Shleifer
Journal of Financial Economics
2017
Intermediate
Related Cases
1983
Corporate Law
Weinberger v. UOP, Inc.
457 A.2d 701 (Del. 1983)
Entire fairness review, minority-shareholder protection, and valuation in a controlling-shareholder freeze-out merger.
1994
Corporate Law
Kahn v. Lynch Communication Systems, Inc.
638 A.2d 1110 (Del. 1994)
Standard of review for controlling-shareholder freeze-out mergers and procedural protections.
1919
Corporate Law
Dodge v. Ford Motor Co.
204 Mich. 459, 170 N.W. 668 (1919)
Corporate purpose, dividends, and the boundary between managerial discretion and shareholder claims.
1977
Securities Regulation
Santa Fe Industries, Inc. v. Green
430 U.S. 462 (1977)
Whether unfairness in a freeze-out merger, without deception or manipulation, states a federal securities-fraud claim.