A type of dilution in which voting power of existing common shareholders (or owners) decreases. Voting power is the percentage of total votes in the hands of a shareholder. It also describes the loss of a controlling share (control) in the ownership (shareholding) base.
This dilution results from a number of reasons including issuance of new share, mergers and acquisitions, restructuring, etc.
The control dilution is also referred to as a voting dilution.
