Drag-Along Rights

정의

Drag-along rights let a majority of shareholders force minority holders to join an approved sale of the company on the same terms, preventing small holders from blocking an exit.

투자유치 시 활용 방법

Standard in venture deals so an acquirer can buy 100 percent of the company once the board and majority approve.

자주 묻는 질문

Are drag-along rights founder-friendly?

Broadly yes when thresholds are reasonable; they ensure a clean exit process. The details of who can trigger them matter.

What is the opposite of drag-along?

Tag-along rights, which let minority holders join a sale initiated by larger holders on the same terms.

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