We use cookies on this site to enable your digital experience. By continuing to use this site, you are agreeing to our cookie policy. close

Common Stockholders Can Wa[i]ve Appraisal Rights Goodbye

Law360 (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.

Despite this common practice, up until a...

Stay ahead of the curve

In the legal profession, information is the key to success. You have to know what’s happening with clients, competitors, practice areas, and industries. Law360 provides the intelligence you need to remain an expert and beat the competition.

  • Access to case data within articles (numbers, filings, courts, nature of suit, and more.)
  • Access to attached documents such as briefs, petitions, complaints, decisions, motions, etc.
  • Create custom alerts for specific article and case topics and so much more!