Sell-out
1. Treasury - corporate finance - company law - minority shareholders - UK.
Under UK company law, the rules relating to sell-outs are designed to protect dissenting / minority shareholders, while balancing the interests of the company as a whole.
In a takeover, if the buyer gets 90% or more acceptances of their offer, a minority shareholder - who has not yet accepted the offer - can then require the offer to acquire their shares at the same buyout price.
This is known as a "sell-out" by the previously dissenting minority (UK Companies Act 2006 - Section 983 - Right of minority shareholder to be bought out by offeror).
There is a corresponding rule in favour of offeror under UK company law, known as a "squeeze-out".
2. Treasury - corporate finance - company law - minority shareholders.
Similar rules in other jurisdictions, differing in their details.
See also
- Company law
- Corporate finance
- Economics
- Financial markets
- Jurisdiction
- Minority interest
- Offeror
- Squeeze-out
- Takeover offer
- Treasury
