Noncontrolling interest arises from a business acquisition where the acquirer does not purchase all 100% shares of common stock. If the purchaser acquires only 75% of common stock, the non controlling interest is 25%. Noncontrolling interest is also referred to as the minority shareholder.
Example:
Adequate Disclosure purchases 76% of common stock of Opinion Dominion. The remaining 24% of common stock are owned by various parties whom do not exercise significant influence. These parties are considered the noncontrolling interest, or minority shareholders.