Significant Influence

Holding of a large enough equity stake in a corporation to require accounting for it in financial statements. Usually, a company that holds at least 20% of the voting stock in another company is considered a holder of significant influence. A company with such a large holding is likely represented on the board of directors of the other firm. The company owning such a stake has to declare its equity holdings, and all dividends received from the position, in its financial reports.