Legal Definitions - controlled company

A controlled company is a type of company that is under the control of an individual, group, or corporation that owns most of the company's voting stock. This means that the controlling entity has the power to make important decisions for the company, such as electing the board of directors and approving major business transactions.

For example, if a corporation owns 80% of the voting stock in a company, it is considered a controlled company because it has the power to make decisions for the company.

Another example is a family-owned business where one family member owns a majority of the voting stock and therefore has control over the company's decisions.

Controlled companies can be beneficial for the controlling entity because they can make decisions that benefit their own interests without having to consider the opinions of other shareholders. However, this can also lead to conflicts of interest and potential abuse of power.