Drag-along right

Also called: drag-along, drag rights

In one line

A right that lets majority shareholders force minority holders to join a sale of the company on the same terms.

In plain English

If the big holders agree to sell the company, drag-along rights compel you to sell your shares too, so a buyer can acquire 100%. You can't hold out.

If you were explaining it to a 5-year-old

If most of the club votes to sell all the toys to one big buyer, the rule says you must sell yours as well — no refusing.

Why it matters when you sell

Drag-along means you may be swept into a sale whether you like it or not, at terms set by others — part of why minority positions have limited control.

Put it to use

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Sources

A general market-practice term. See how we define and source the glossary in our methodology. General information, not advice.

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Drag-along right

Related terms

Put it to use