drag-along rights

Drag-Along Rights

The right of majority shareholders to force minority shareholders to sell their shares to a third party or to liquidate the company. Majority shareholders may exercise drag-along rights if a potential buyer will only agree to purchase 100% of a company.

drag-along rights

The right of majority shareholders to force minority shareholders to join in a sale of a company. These rights allow majority shareholders to complete a sale in the event a buyer wants to own 100% of the firm.
References in periodicals archive ?
right of first refusal, tag-along or drag-along rights.
standard language of drag-along provisions, how to use drag-along rights as an exit strategy, and more
These organizational documents contain customary provisions, including provisions relating to certain approval rights, preemptive rights, restrictions on transfer, rights of first refusal, tag-along rights, drag-along rights and other customary provisions.
Hui and Clifford have also agreed to exclusivity arrangements and to exercise certain drag-along rights relating to the remaining outstanding shares of PB Holding.