Freeze-out provision

{
  "id": "MLC-T-LAW-002245",
  "term": "Freeze-out provision",
  "field": "Law",
  "definition": "A provision of a state takeover statute or corporate charter that bars a shareholder crossing a stated ownership threshold from completing a merger or other business combination with the company for a set waiting period unless the board approves. It slows hostile bidders by keeping them from using the target's assets or cash flow to pay for the acquisition. Section 203 of the Delaware General Corporation Law sets a three-year wait for holders of 15 percent or more of the voting stock.",
  "url": "https://mlchart.com/terminology/law/freeze-out-provision/"
}