drag-along right

Drag-along rights are fairly standard terms in a stock purchase agreement.

Drag-along rights typically terminate upon an initial public offering.

Drag-along right (DAR) is a legal concept in corporate law.

Drag-along rights enable controlling shareholders to force other shareholders to sell their rights.

Drag-Along Rights.

A drag-along right gives the investing shareholder the right to force the other investor(s) to exit, should the investing shareholder exit, once again, usually on the same price and terms.