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.
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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.

Look at other dictionaries:

  • 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 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 — 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

  • Tag-along right — is a legal concept in corporate law. The right assures that if the majority shareholder sells his stake, minority holders have the right to join the deal and sell their stake at the same terms and conditions as would apply to the majority… …   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

  • Right of first refusal — (ROFR or RFR) is a contractual right that gives its holder the option to enter a business transaction with the owner of something, according to specified terms, before the owner is entitled to enter into that transaction with a third party. In… …   Wikipedia

  • drag — drag1 W3S3 [dræg] v past tense and past participle dragged present participle dragging ▬▬▬▬▬▬▬ 1¦(pull something)¦ 2¦(pull somebody)¦ 3 drag yourself to/into/out of etc something 4¦(persuade somebody to come)¦ 5¦(computer)¦ 6¦(be boring)¦… …   Dictionary of contemporary English

  • Drag (film) — Drag Directed by Frank Lloyd Produced by Richard A. Rowland Screenplay by Bradley King Based on William Dudley P …   Wikipedia

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