Squeeze Out
"Squeeze Out" refers to a financial strategy where a majority shareholder or group of shareholders forces minority shareholders to sell their shares, often at a price determined by the majority. This process can occur in various business structures, including corporations and partnerships, and is typically executed to consolidate control or streamline operations.
The process usually involves legal procedures and may require a valuation of the company to ensure fairness. In some cases, minority shareholders may have limited options to resist this action, making it a significant aspect of corporate governance and shareholder rights within the context of business law.