Drag-along right
Drag-along right (DAR) 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] A drag-along right gives the investing shareholder the right to force the other investor(s) to exit, should the investing shareholder exit, once again, usually on the same price and terms. 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
<templatestyles src="Reflist/styles.css" />
Cite error: Invalid <references>
tag; parameter "group" is allowed only.
<references />
, or <references group="..." />
External links
<templatestyles src="Asbox/styles.css"></templatestyles>
<templatestyles src="Asbox/styles.css"></templatestyles>