Drag-along right

Drag-Along Right is a legal concept in corporate law. The right assures that if the majority shareholder sells his stake, minority holders are forced to join the deal. This right protects majority shareholders.^[1] Drag-along rights are fairly standard terms in a stock purchase agreement. Drag-along rights typically terminate upon an initial public offering.^[2]

See also

• Tag-Along right, the converse concept
• Pre-emption right
• Right of first refusal

References

External links

• Drag-along rights
• The Dark Side of Drag-Along/Tag-Along Rights

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