What is a minority owner?

A minority owner is an individual or entity that holds less than 50% ownership stake in a company. Minority owners typically do not have controlling interest in the business and may have limited decision-making power compared to majority owners.

However, minority owners still have a financial interest in the company and are entitled to a share of the profits and losses. They may also have a say in certain decisions, depending on the ownership agreement and voting rights.

Minority owners may include individual investors, venture capital firms, private equity firms, or other businesses looking to diversify their investment portfolios. They often provide capital and expertise to help grow the business but may not be involved in the day-to-day operations.

Overall, minority owners play an important role in the success and growth of a company by providing additional resources and perspectives to support the majority owners.