What is “Drag Along” clause in Share Holding Agreement/ equity funding term sheets? Drag-along rights allow majority shareholders to compel minority shareholders to sell their shares in the event of a third-party sale. The intent is to avoid minority shareholders blocking a sale and to secure higher valuation and strategic benefits for the selling majority … Continue reading Understanding Drag-Along Rights in Shareholder Agreements
Significance of Minority Shareholder Protection in Corporate Governance
WHO IS A MINORITY SHAREHOLDER? The Companies Act of 2013 doesn’t define who counts as a minority shareholder, but usually means one who owns less than 50 per cent of the company’s voting rights or lack direct or indirect control over its management and decision-making processes. A minority shareholder, as defined in the Merriam Webster … Continue reading Significance of Minority Shareholder Protection in Corporate Governance
DUCTUS EDGE 