effective control
[/ɪˈfɛktɪv kənˈtroʊl/]
noun
controle efetivo
1. The actual power or authority to direct, manage, or influence the operations and decisions of a person, organization, or entity, regardless of formal ownership or titles
The parent company maintains effective control over its subsidiaries through strategic decision-making authority.
A empresa-mãe mantém controle efetivo sobre suas subsidiárias através da autoridade nas decisões estratégicas.
2. In legal and regulatory contexts, the ability to direct the fundamental business decisions of an entity
The regulatory body determined that the investor had effective control of the company despite owning less than 50% of shares.
O órgão regulador determinou que o investidor tinha controle efetivo da empresa apesar de possuir menos de 50% das ações.
3. Practical dominance or command over a situation, process, or outcome
To maintain effective control of the project, the manager established clear protocols and monitoring systems.
Para manter controle efetivo do projeto, o gerente estabeleceu protocolos claros e sistemas de monitoramento.
This term is widely used in Brazilian corporate law, mergers and acquisitions, and financial regulation. It's crucial in understanding corporate structures and regulatory compliance, particularly when distinguishing between legal ownership and practical management authority. In the USA, the concept is essential in securities law and tax regulations.
Related Idioms & Phrases
have effective control over
maintain effective control
exercise effective control
gain effective control
lose effective control
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