freezeout

noun
freeze·​out | \ ˈfrēz-ˌau̇t \

Legal Definition of freezeout

 (Entry 1 of 2)

: a corporate action (as a merger) taken by those in control of the corporation (as controlling shareholders or the board of directors) for the purpose of causing the minority shareholders to lose their equity in the corporation (as by the sale of their shares) — compare squeezeout

freeze out

transitive verb

Legal Definition of freeze out (Entry 2 of 2)

: to subject to a freezeout

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Cite this Entry

“Freezeout.” Merriam-Webster.com Legal Dictionary, Merriam-Webster, https://www.merriam-webster.com/legal/freezeout. Accessed 25 Feb. 2021.

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