Freeze-out

{
  "id": "MLC-T-LAW-002244",
  "term": "Freeze-out",
  "field": "Law",
  "definition": "The process by which a controlling shareholder or group of shareholders forces minority owners to sell their equity interest in a corporation. This action eliminates the minority shareholders' ownership and is accomplished through a merger, recapitalization, or reverse stock split where the minority receives cash for their shares. Dissenting shareholders may have appraisal rights, which permit them to petition a court to determine the fair value of their shares.",
  "url": "https://mlchart.com/terminology/law/freeze-out/"
}