Can you be denied on closing day?
Shareholders can be legally compelled to sell their shares during corporate takeovers, mergers, or acquisitions if specific statutory thresholds and governance rules are met. In public company acquisitions, if a majority buyer or acquiring corporation successfully executes a tender offer and acquires a supermajority stake—typically ninety percent or more of the outstanding voting shares—they can invoke statutory short-form merger laws, known as drag-along rights or compulsory squeeze-out acquisitions. These legal provisions allow the acquiring entity to force remaining minority shareholders to surrender their shares for the exact same cash or stock consideration offered in the buyout. While minority investors retain legal rights to appraise fair market value through the courts if they believe the offer is inadequate, they cannot ultimately block the structural transaction or refuse to sell their equity.
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