Definition of Freeze out:
A freeze-out (also referred to as a squeeze out) is 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.
Situation in which controlling or majority members of an organization frustrate the expectations of minority members by keeping them out of the decision making process or by withholding certain information.
Freeze-outs usually occur in closely-held companies, wherein the majority shareholders can converse with one another. The majority shareholders will attempt to freeze out the minority from the decision making process, rendering minority voting rights useless. Such actions may be illegal and could be overturned by the courts after review. This action is often accomplished using an acquisition. Many states have defined what is permissible in freeze-outs through their existing statutes on corporate mergers and acquisitions.
Behave in a hostile or obstructive way so as to exclude someone from something.
Synonyms of Freeze out
Exclude, Leave out, Shut out, Cut out, Neglect, Ignore, Ostracize, Reject, Disown, Spurn, Slight, Snub, Shun, Cut, Cut dead, Turn ones back on, Cold-shoulder, Give someone the cold shoulder, Leave out in the cold, Ban, Bar, Bar out, Blockade, Chase out, Count out, Cut off, Debar, Drive out, Drum out, Embargo, Exclude, Force out, Harry out, Hunt out, Ignore, Keep out, Leave out, Lock out, Omit, Ostracize, Pass over, Preclude, Prohibit, Push out, Reject, Relegate, Repudiate, Rout out, Run out, Send to Coventry, Shut out, Smoke out, Taboo
How to use Freeze out in a sentence?
- This pressure may be introduced by majority holders voting to terminate minority shareholder employees or not declaring dividends.
- During a banquet, she completely froze out her husband.
- Freeze outs may accompany a corporate merger or acquisition that suspend minority voting rights.
- A freeze out (or squeeze out) is a shareholder action where majority holders pressure minority holders into selling their shares.
- Freeze outs are subject to regulatory scrutiny, but the legal terrain is complicated.
Meaning of Freeze out & Freeze out Definition