LLC Agreement: Drag-Along Rights | Practical Law

LLC Agreement: Drag-Along Rights | Practical Law

A standard clause in many LLC agreements, a drag-along provision gives a majority member wanting to sell to an unrelated third party all or a substantial percentage of its membership interests in the company the right to force the other members to also sell all or a portion of their membership interests to the third party. This Standard Clause has integrated notes with important explanations and drafting and negotiating tips.

LLC Agreement: Drag-Along Rights

Practical Law Standard Clauses 9-383-8836 (Approx. 16 pages)

LLC Agreement: Drag-Along Rights

by Practical Law Corporate & Securities
MaintainedUSA (National/Federal)
A standard clause in many LLC agreements, a drag-along provision gives a majority member wanting to sell to an unrelated third party all or a substantial percentage of its membership interests in the company the right to force the other members to also sell all or a portion of their membership interests to the third party. This Standard Clause has integrated notes with important explanations and drafting and negotiating tips.