Freezouts and the Treatment of Minority Shareholders

Freezeouts and the Treatment of Minority Shareholders

Usually, the approval of a majority of the shareholders is needed before a merger can be completed. The most common majority threshold is a 51% margin. Now, when the majority shareholders approve the deal, what happens to the minorities?

Voting Approval

In a previous article, we have discussed voting approval and the process in which shareholders go through voting to close out or approve a deal. The approval of the shareholders is needed in able to close the deal.

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