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Chirag Singla

I work on Contract D...ย โ€ขย 21d

Ever been part of a group trip where one person books the tickets โ€” and everyone else has to follow along, even if they didnโ€™t fully agree? Thatโ€™s pretty much what Drag Along Rights do in the startup world. If a majority shareholder decides to sell the company, they can drag the minority shareholders along โ€” forcing them to sell their shares too, usually to a new buyer during an acquisition. It protects the majority from being blocked by a few holdouts. But remember โ€” it only works if itโ€™s written into your Shareholders Agreement and Articles of Association. More such plain-English breakdowns coming up in this series. Follow for more! #StartupLaw #DragAlongRights #FoundersGuide #TermSheetTips

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