separation of ownership from control
- noun a situation in which the owners of a business do not manage it or control it. This applies particularly in large publicly-owned companies where there are many shareholders, none of whom has a controlling interest. It can also apply to smaller family-owned companies where the business is run by managers. However, in the case of large companies important shareholders like investment trusts and pension funds can exert pressure on the management to run the company in a certain way.