The Law Dictionary

Your Free Online Legal Dictionary • Featuring Black’s Law Dictionary, 2nd Ed.

DRAG ALONG RIGHTS Definition & Legal Meaning

Definition & Citations:

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.

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