freeze-out provision

freeze-out provision definition - business

freeze-out provision

A clause in a corporate charter that permits an acquiring firm to buy the shares of noncontrolling stockholders at a fair price after a specified period, generally two to five years. See also dissenters' rights.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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