What are squeeze-out and sell-out mechanisms?
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Answer provided 03.07.2023 15:05
Squeeze-out means crowding out minority shareholders. That is, the procedure provides that the dominant shareholder has the right to send the company a public irrevocable demand for the purchase of shares from all other owners of the company's shares together with a copy of the contract concluded with the banking institution in which the escrow account has been opened.
Sell-out - the right of minority shareholders to buy back their shares. Minority shareholders are given the right to demand from the shareholder-owner of 95% of the company's shares the mandatory purchase at a fair price of their shares.
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