World Library  
Flag as Inappropriate
Email this Article

Drag-along right

Article Id: WHEBN0017289060
Reproduction Date:

Title: Drag-along right  
Author: World Heritage Encyclopedia
Language: English
Subject: Equity carve-out, Bookrunner, Seasoned equity offering, Super-majority amendment, Demerger
Collection:
Publisher: World Heritage Encyclopedia
Publication
Date:
 

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

References

  1. ^ Drag-Along Rights
  2. ^ www.altassets.com

External links

  • Drag-along rights
  • The Dark Side of Drag-Along/Tag-Along Rights
This article was sourced from Creative Commons Attribution-ShareAlike License; additional terms may apply. World Heritage Encyclopedia content is assembled from numerous content providers, Open Access Publishing, and in compliance with The Fair Access to Science and Technology Research Act (FASTR), Wikimedia Foundation, Inc., Public Library of Science, The Encyclopedia of Life, Open Book Publishers (OBP), PubMed, U.S. National Library of Medicine, National Center for Biotechnology Information, U.S. National Library of Medicine, National Institutes of Health (NIH), U.S. Department of Health & Human Services, and USA.gov, which sources content from all federal, state, local, tribal, and territorial government publication portals (.gov, .mil, .edu). Funding for USA.gov and content contributors is made possible from the U.S. Congress, E-Government Act of 2002.
 
Crowd sourced content that is contributed to World Heritage Encyclopedia is peer reviewed and edited by our editorial staff to ensure quality scholarly research articles.
 
By using this site, you agree to the Terms of Use and Privacy Policy. World Heritage Encyclopedia™ is a registered trademark of the World Public Library Association, a non-profit organization.
 



Copyright © World Library Foundation. All rights reserved. eBooks from World Library are sponsored by the World Library Foundation,
a 501c(4) Member's Support Non-Profit Organization, and is NOT affiliated with any governmental agency or department.