Working control is a concept that is applicable to publicly traded corporations, generally in cases where the ownership of the corporation is widely dispersed among numerous shareholders. It exists when no single individual has a majority ownership of the voting shares, but when a minority shareholder or group of them has voting power sufficient to influence the decision-making of the company.

In practice, it is common for investors to own large blocks of voting shares so that they can influence how the company conducts its business operations. This is especially true of institutional investors such as pension funds and mutual funds, who may hold significant ownership interests in a company.

It is important to recognize that the absence of a majority interest does not necessarily preclude a shareholder from obtaining working control. In some cases, a minority shareholder could even obtain working control with less than 20% of voting shares. Furthermore, a group of minority shareholders may join forces to obtain the necessary voting power for working control.

When minority shareholders gain working control of a company, it is essential for them to exercise extreme caution. Working control brought about by minority shareholders is often seen as a form of hostile takeover and can become a source of conflict between shareholders. In extreme cases, it can also lead to prolonged and costly litigation.

Given the potential for rancor and legal wrangling, strategy and planning are essential when minority shareholders obtain working control. Generally, courts and other regulatory authorities frown upon working control obtained by shareholders without majority ownership. This creates an imperative for minority shareholders to create and adopt a plan of action that satisfies the requirements of fairness and transparency.

Therefore, it is important to understand that working control in a corporation is a complex concept. While ownership of 20% of all outstanding shares is often seen as sufficient to acquire working control, it is possible to acquire it with less than that. At the same time, it is imperative for minority shareholders to exercise caution and due diligence when obtaining the necessary voting power to determine corporate policy.