I am working on a text and it confuses my mind. I do understand the meaning and yet can not be sure about it. It says:

The arbitrator holds shares, either directly or indirectly, which by reason of number or denomination constitute a material holding in one of the parties or an affiliate of the parties that is publicly listed.

Is there any other word for material holding, or is it the same thing with 'to material influence on a company' ?

  • Holding here means shareholding. – Tim Lymington Jul 25 '13 at 15:13
  • And (in this context) material means significant. Hence material holding = significant shareholding – TrevorD Jul 25 '13 at 17:47
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    And exactly what constitutes a material holding will vary by authority. – choster Jul 25 '13 at 18:35

A material holding in a company might mean one of two things:-

It could be a shareholding that is sufficiently large as to allow the holder considerable influence over the company. If I owned 30% of the shares in ACME Plc, the management of that company would have to pay attention to my views on investment decisions, which they wouldn't have to do if I owned 0.0001% of the shares.

Alternatively, it could be a holding that is a large fraction of the holder's wealth. If my life's savings were invested in ACME Plc, it might be thought that fact might influence my decisions if I were a councillor voting on which company will get a contract. But if I have a fiver's worth of shares, nobody would suspect me of using my vote improperly. The holding would not be material.

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