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Drag Along Right




In case of any sale of shares resulting in a change of control over the Company (typically to accept an acquisition offer), then all other shareholders must also sell their shares, on the same terms, pro-rata, to the same acquirer. This protects everyone from one small shareholder refusing to sell their shares in an acquisition offer and blocking a deal everyone else wants to see happen.

In case of any sale of shares resulting in a change of control over the Company, the selling shareholder(s) shall have the right to request the other shareholders to sell the same portion of their shares to the same third party, on terms and conditions which are no less advantageous to them than those on which the selling shareholder is selling its shares.