drag-along rights

drag-along rights
Rights contained in a company's articles of association for a majority of the shareholders (usually more than 75% in nominal value) to accept an offer to buy their shares and to force the holders of the remaining 25% to accept such an offer.
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+ drag(-)along rights
USA
The right for a majority of the equity holders (usually more than 75%) to accept an offer to buy their equity and to force the remaining holders to accept the offer on the same terms. Sometimes this right is only granted to one or more majority equity holders. Drag-along rights are typically found in a stockholders agreement in the case of a corporation or in the LLC agreement or partnership agreement in the case of an LLC or partnership.
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Practical Law Dictionary. Glossary of UK, US and international legal terms. . 2010.

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  • drag along rights — Rights contained in a company s articles of association for a majority of the shareholders (usually more than 75% in nominal value) to accept an offer to buy their shares and to force the holders of the remaining 25% to accept such an offer.… …   Law dictionary

  • Drag-Along Rights — 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 minority shareholder the same price, terms, and conditions as any other seller. This …   Investment dictionary

  • 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… …   Wikipedia

  • drag along right — Rights contained in a company s articles of association for a majority of the shareholders (usually more than 75% in nominal value) to accept an offer to buy their shares and to force the holders of the remaining 25% to accept such an offer.… …   Law dictionary

  • drag-along right — Rights contained in a company s articles of association for a majority of the shareholders (usually more than 75% in nominal value) to accept an offer to buy their shares and to force the holders of the remaining 25% to accept such an offer.… …   Law dictionary

  • tag along rights — Also known as piggyback rights. Common provisions in joint venture or private equity agreements, which enable certain shareholders (usually minority shareholders) to force other shareholders (who wish to sell their shares) to procure an offer for …   Law dictionary

  • tag-along rights — Also known as piggyback rights. Common provisions in joint venture or private equity agreements, which enable certain shareholders (usually minority shareholders) to force other shareholders (who wish to sell their shares) to procure an offer for …   Law dictionary

  • Drag king — All The Kings Men a drag king performance troupe from Boston, MA …   Wikipedia

  • tag along right — Also known as piggyback rights. Common provisions in joint venture or private equity agreements, which enable certain shareholders (usually minority shareholders) to force other shareholders (who wish to sell their shares) to procure an offer for …   Law dictionary

  • piggyback rights — Also known as piggyback rights. Common provisions in joint venture or private equity agreements, which enable certain shareholders (usually minority shareholders) to force other shareholders (who wish to sell their shares) to procure an offer for …   Law dictionary

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