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This right protects majority shareholders (allowing them to sell to an owner desiring total control of the entity, without being encumbered by holdout investors), but also protects minority shareholders (who can sell their investment on the same terms and conditions as the majority shareholder).
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to join the deal. However, the owner must usually offer the same terms and conditions to the minority shareholders as to the majority shareholder(s). Drag-along rights are fairly standard terms in a stock purchase agreement.
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In most jurisdictions drag-along and tag-along rights are not statutory rights and will need to be included in the shareholders agreement or
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of the company. The provisions will typically specify the percentage of shareholders required for triggering the drag-along right.
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167:Drag-along rights typically terminate upon an
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249:The Dark Side of Drag-Along/Tag-Along Rights
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186:Right of first refusal
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153:This differs from a
142:majority shareholder
40:improve this article
340:Senior secured debt
875:Outline of finance
787:Market value added
770:Financial modeling
728:Business valuation
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125:) is a concept in
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222:www.altassets.com
211:Drag-Along Rights
181:Pre-emption right
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964:expanding it
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33:verification
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591:Squeeze-out
561:Proxy fight
491:Mergers and
404:Bought deal
335:Senior debt
96:August 2023
1003:Categories
956:legal term
837:Tax shield
797:Mismarking
601:Stock swap
551:Pitch book
521:Divestment
399:Bookrunner
320:Pari passu
198:References
66:newspapers
812:Pure play
705:Valuation
571:Sell side
434:Greenshoe
643:Leverage
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516:Demerger
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360:Warrant
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