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 a common fixture among venture capital deals,
terms, such as for the reasons discussed above, drag-along rights
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
drag-along rights therefore effectively alter this rule to one that
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. The Reserve Bank has treated the put options as debt in the hands of foreign investors which have to comply with External Commercial Borrowing norms.
Drag-along and tag-along rights: If a shareholder decides to sell shares, can he trigger an obligation of other shareholders to sell on the same terms (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. Some of these rights are described in Figure 2.
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).