Squeeze-out Right

"Why is the squeeze-out right used?"

Quick Answer

A mechanism in M&A law allowing a controlling shareholder (usually holding over 98%) to force minority shareholders to sell their shares at a fair price, taking the company private.

Scope and Legal Distinctions

Compulsory acquisition of a minority position requires an identified statutory route and its conditions. A majority shareholder's wish to buy is not enough by itself.

What to Check in Practice

Check company status, ownership threshold, triggering conduct or transaction, valuation and procedural rights before seeking a forced transfer.

Sources & Authorities

Statutory framework and official guidance for this definition.

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