Common Stockholders Can Wa[i]ve Appraisal Rights Goodbye

By Morgan Mordecai, Adam Slutsky and Dylan Schweers (January 11, 2019, 5:38 PM EST) -- Private equity and venture capital firms have long been including so-called drag-along rights in the agreements surrounding their investments. Drag-along rights protect these investors from subsequent attempts by minority stockholders to block the sale of the company. And in exchange for the minority stockholders' consent to sell the company, the minority stockholders receive a sales price, terms and conditions equal to the majority. For this benefit, stockholder agreements typically require minority stockholders to waive their statutory appraisal rights in the event of a merger or acquisition where the majority had to use its drag-along rights....

Law360 is on it, so you are, too.

A Law360 subscription puts you at the center of fast-moving legal issues, trends and developments so you can act with speed and confidence. Over 200 articles are published daily across more than 60 topics, industries, practice areas and jurisdictions.


A Law360 subscription includes features such as

  • Daily newsletters
  • Expert analysis
  • Mobile app
  • Advanced search
  • Judge information
  • Real-time alerts
  • 450K+ searchable archived articles

And more!

Experience Law360 today with a free 7-day trial.

Start Free Trial

Already a subscriber? Click here to login

Hello! I'm Law360's automated support bot.

How can I help you today?

For example, you can type:
  • I forgot my password
  • I took a free trial but didn't get a verification email
  • How do I sign up for a newsletter?
Ask a question!