📚 Upcoming Event: Contract Law Crash Course with BPP

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- Essential contract law principles
- Mock SQE-style questions
- Expert instruction from BPP
📅 Date: 18 June 2025
🕒 Time: 6pm

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Message: <blockquote data-quote="Daniel Boden" data-source="post: 19308" data-attributes="member: 487">I'd add a couple here that we were made aware of on my Weil scheme: Drag-along rightsA drag-along right is a provision that enables a majority shareholder to force a minority shareholder to join in the sale of a company. The majority owner doing the dragging must give the minority shareholder the same price, terms, and conditions as any other seller. Drag-along rights are designed to protect the majority shareholder.Key Takeaways:<ul> <li data-xf-list-type="ul">Drag-along rights are in place during investment negotiations between a company's majority shareholders and minority shareholders.</li> <li data-xf-list-type="ul">Drag-along rights help eliminate minority owners and sell 100% of a company's securities to a potential buyer.</li> <li data-xf-list-type="ul">Although this provision protects majority shareholders from blocked sales, minority shareholders can realize favourable sales terms that may not otherwise be available.</li> </ul>Tag-along rightsTag-along rights also referred to as "co-sale rights," are contractual obligations used to protect a minority shareholder, usually in a <a href="https://www.investopedia.com/terms/v/venturecapital.asp" target="_blank">venture capital</a> deal. If a majority shareholder sells his stake, it gives the minority shareholder the right to join the transaction and sell their minority stake in the company. Tag-alongs effectively oblige the majority shareholder to include the holdings of the minority holder in the negotiations so that the tag-along right is exercised.Key Takeaways:<ul> <li data-xf-list-type="ul">Tag-along rights are contractual obligations to protect a minority investor in a startup or company.</li> <li data-xf-list-type="ul">Tag-along rights are mainly used to ensure that the stake of minority stakeholders is considered during a company sale.</li> <li data-xf-list-type="ul">They ensure greater liquidity for minority shareholders.</li> <li data-xf-list-type="ul">The minority investors are entitled to the same price and conditions as the majority investor when the shares are sold.</li> </ul>(Source: Investopedia)</blockquote>

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📚 Upcoming Event: Contract Law Crash Course with BPP

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