Drag-Along Rights - Term Sheet

The video tutorial explains drag-along rights, which allow majority shareholders to compel minority shareholders to agree to a transaction, such as a company sale, if certain conditions are met. These conditions include a minimum threshold of shareholder approval and a minimum valuation. The rights aim to prevent minority shareholders from blocking beneficial transactions. They typically expire if the company goes public.

What new insight or understanding did you gain from this video?

Evaluate responses using AI:

OFF