A right that allows majority shareholders to force minority shareholders to accept an agreement. In a typical drag-along agreement, if a majority of shareholders agree to sell or liquidate a company then the remaining shareholders must consent and not raise objections. "Dragging" refers to the majority shareholder forcing the minority shareholder into an agreement that the minority shareholder may not want to enter into. Such a right is designed to block smaller investors from "holding out" on a deal in the hopes of raising share prices.
Related information about drag-along right:
- Drag-along right - Wikipedia, the free encyclopedia
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.
- Drag-Along Rights Definition | Investopedia
A right that enables a majority shareholder to force a minority shareholder to join in the sale of a company. The majority owner doing the dragging must give the ...
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Nov 7, 2007 ... “Drag-along” right: Subject to customary exceptions, if holders of [50]% of the Preferred approve a proposed sale of the Company to a third ...
- Term Sheet: Drag Along
Feb 6, 2005 ... As Jason and I continue to wind our way through a typical VC term sheet, we thought we'd tackle the infamous “drag-along.
- What is drag-along right? definition and meaning
Definition of drag-along right: A right that allows majority shareholders to force minority shareholders to accept an agreement. In a typical drag-along agreement , ...
- What is drag along right? definition and meaning
Definition of drag along right: Majority shareholder's privilege of obligating the minority shareholders to sell their shares at a price offered in accordance with the ...
- Drag Along/Tag Along Rights - Warsaw Business Journal - Online ...
A Drag Along right gives the investing shareholder the right to force the other ... On the other hand, for many business owners, a Drag Along right represents a ...
- Drag Along/Tag Along Rights | Euro-Phoenix Financial Advisors ...
May 17, 2010 ... A Drag Along right gives the investing shareholder the right to force the ... On the other hand, for many business owners, a Drag Along right ...