Compulsory redemption (Swedish: tvångsinlösen), also called squeeze-out or redemption of minority shares, means that a shareholder owning more than 90 percent of a company's shares may buy out the remaining shares. Each minority shareholder may in turn demand to be bought out. The rules are in Chapter 22 of the Swedish Companies Act.
If the parties disagree on the right to redemption or on the size of the redemption amount, the matter is decided by arbitrators. Once completed, the shares pass to the majority owner, and the change must be entered in the share ledger.
A minority shareholder is a shareholder who does not have a controlling interest in a limited company.
Read more
The redemption amount is the compensation paid to a shareholder when their shares are redeemed.
Read more
A majority shareholding means one or more owners together hold more than half of the shares or votes.
Read more
Redemption of shares means the company redeems and repays certain shares to the owner.
Read more
Streamline the management of your ownership with an online digital share register – get started for free in minutes and let our guides help you easily handle everything from ownership changes to complex processes such as share issues, whether you are a large or small company.
🏢 Stora Nygatan 33, 411 08, Gothenburg
✉️ info@nvr.se