Definition:
Minority interest or share in a corporation refers to a shareholder who holds less than 50 percent of the shares of that corporation's voting stock. An individual may hold a minority interest, but most often the minority interest in one corporation is held by another corporation.
For accounting purposes, the minority interest in a subsidiary is shown on a consolidated balance sheet in a specific way. The parent company figures are combined with those of the subsidiary. The portion of the subsidiary company's stock not owned by the parent company is minority interest.
