Squeeze-out
Term · Law · MLC-T-LAW-004654
A corporate action in which a controlling shareholder forces minority shareholders to sell their equity, thereby eliminating their ownership interest in the company. This is accomplished through a transaction such as a reverse stock split or a cash-out merger that is approved by the majority. State corporate laws, such as those in Delaware, require that the price offered to minority shareholders in a squeeze-out be fair.
| Identifier | MLC-T-LAW-004654 |
|---|---|
| Field | Law |
Record as JSON
{
"id": "MLC-T-LAW-004654",
"term": "Squeeze-out",
"field": "Law",
"definition": "A corporate action in which a controlling shareholder forces minority shareholders to sell their equity, thereby eliminating their ownership interest in the company. This is accomplished through a transaction such as a reverse stock split or a cash-out merger that is approved by the majority. State corporate laws, such as those in Delaware, require that the price offered to minority shareholders in a squeeze-out be fair.",
"url": "https://mlchart.com/terminology/law/squeeze-out/"
}
Record 4,741 of 5,441 in Law terminology (MLC-0107). Request the full dataset.