Corporate Governance
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Freeze-out Merger
A transaction in which a controlling shareholder acquires the remaining minority shares, usually for cash or other consideration.
Why It Matters
Freeze-out mergers test how corporate law protects minority shareholders when the buyer already controls the corporation and can influence process, timing, information, and valuation.
Selected Literature
A short list of directly relevant archive entries.
2000
Advanced
Investor Protection and Corporate Governance
Rafael La Porta, Florencio Lopez-de-Silanes, Andrei Shleifer, and Robert W. Vishny
Journal of Financial Economics
2005
Advanced
2008
Intermediate
The Law and Economics of Self-Dealing
Simeon Djankov, Rafael La Porta, Florencio Lopez-de-Silanes, and Andrei Shleifer
Journal of Financial Economics
2017
Intermediate
Related Cases
1983
Corporate Law
Weinberger v. UOP, Inc.
457 A.2d 701 (Del. 1983)
Entire fairness review, minority-shareholder protection, and valuation in a controlling-shareholder freeze-out merger.
1994
Corporate Law
Kahn v. Lynch Communication Systems, Inc.
638 A.2d 1110 (Del. 1994)
Standard of review for controlling-shareholder freeze-out mergers and procedural protections.
1977
Securities Regulation
Santa Fe Industries, Inc. v. Green
430 U.S. 462 (1977)
Whether unfairness in a freeze-out merger, without deception or manipulation, states a federal securities-fraud claim.
2014
Corporate Law
Kahn v. M&F Worldwide Corp.
88 A.3d 635 (Del. 2014)
Business-judgment review for controller buyouts using dual procedural protections.