Freeze Out

An action taken by a firm's majority shareholders that pressures minority holders to sell their stakes in the company. A variety of maneuvers may be considered freeze-out tactics, such as the termination of minority shareholder employees or the refusal to declare dividends.

Also referred to as a "squeeze out".

Freeze outs usually occur closely held companies, where majority shareholders can converse with one another. Majority shareholders attempt to freeze out the minority from the decision making process, rendering minority voting rights useless. Such actions are often illegal and may be overturned by the courts.

Investment dictionary. . 2012.

Look at other dictionaries:

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  • freeze out — vt: to subject to a freezeout Merriam Webster’s Dictionary of Law. Merriam Webster. 1996 …   Law dictionary

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  • freeze out — phrasal verb [transitive] Word forms freeze out : present tense I/you/we/they freeze out he/she/it freezes out present participle freezing out past tense froze out past participle frozen out informal to prevent someone from taking part in… …   English dictionary

  • freeze-out — ˈ ̷ ̷ˌ ̷ ̷ noun ( s) Etymology: freeze out 1. : elimination or exclusion by freezing out 2. : a method of playing poker by which the players start with agreed upon capital to which they cannot add or from which they can withdraw nothing, each… …   Useful english dictionary

  • freeze out — transitive verb Date: 1861 exclude • freeze out noun …   New Collegiate Dictionary

  • freeze-out — noun see freeze out …   New Collegiate Dictionary

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