Legal rights that allow majority shareholders of a company to force MINORITY INTERESTS to sell their shares in the event of a TAKEOVER bid; this is necessary in situations where the acquiring company requires 100 percent control. Drag along rights must be specifically negotiated in a CORPORATE FINANCE transaction. See also TAG ALONG RIGHTS.

More On This Topic

Link to This Definition
Did you find this definition of DRAG ALONG RIGHTS helpful? You can share it by copying the code below and adding it to your blog or web page.
Written and fact checked by The Law Dictionary