What are squeeze-out and sell-out mechanisms?
solvedAnswers
Tatіana Mazur
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.
03.07.2023 15:05