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 ?
Drag-along rights allow a particular owner, typically the holder of
Drag-along rights are not unique to large venture capital-backed
modifying fiduciary duties, drag-along rights, and waiving the right to
modifications and drag-along rights, this factor is not a compelling
Tejoori was forced to dispose of its interest by virtue of drag-along rights in the Bekon shareholders' agreement.
right of first refusal, tag-along or drag-along rights.
However, many other alternatives might be considered, such as preemption rights, sales to outsiders, transfers to group companies, put options, call options, and tag-along and drag-along rights.
Drag-along rights One partner (usually the majority shareholder) can arrange a sale to an outsider and then force the other partner to sell its shares as well (usually at the same price and on the same terms).
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.
Additionally, with respect to the DSI shares, there are co-sale rights in favor of the Endan Shareholders and drag-along rights in favor of DSSI.