squeeze-out

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Squeeze-Out

In joint stock companies, to buy the stocks of a minority group of shareholders without their necessary consent. A group of shareholders owning the large majority of the company have the ability to squeeze out remaining shareholders. The percentage of shareholders needed varies between jurisdictions. For example, the United Kingdom requires shareholders owning 90% of the company to consent to squeeze out the other shareholders, while Germany requires 95%. Minority shareholders receive compensation in return for surrendering their shares.

squeeze-out

The forcing of stockholders to sell their stock. Majority holders of a company's stock may attempt a squeeze-out of minority stockholders in order to take complete control of the firm.
References in periodicals archive ?
The Stockholder Rights Plan was adopted by the Company on October 13, 1998 to assure that the Company's stockholders would receive fair and equal treatment in the event of a proposed takeover of the Company and to guard against partial tender offers, squeeze outs, open-market accumulations and other abusive tactics to gain control of the Company without paying all stockholders a control premium.