Often, an LLC's operating agreement or corporation's shareholder agreement contain provisions for what will occur in the event that a third party seeks to purchase an interest(s) in the company.

For instance, operating agreements and shareholder agreements typically contain provisions that protect both majority and minority rights in the company. For instance, a provision may contain a "Drag-Along" provision that allows a majority interest(s) to drag along the minority interest holders to sell their interests.  

Further, an operating agreement or shareholder agreement may have a "Tag-Along" clause which provides minority interest(s) with protection if the majority attempts to sell its interest(s) to a third party without the sale of the minority interest by requiring the third party to purchase the minority interest/shares as well.

Read more about the difference between Drag-Along and Tag-Along Rights on LaszloLaw's business law blog.  

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