Glossary

Drag Along

Drag along is a right held by majority shareholders to require minority shareholders to join a share sale.

Feb 8, 2025brenda-silbermanlazo

What is drag along?

Drag along is a right held by majority shareholders to require minority shareholders to join a share sale. For example: If a company is to be sold and more than 60% of the shareholders want to proceed with the sale, they can require the remaining shareholders to join the sale and sell their shares.

This is done specifically to prevent the share sale from being blocked and to allow everyone to exit their investment in the company.

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