Case report: Court of Appeal upholds drag along decision in Re Charterhouse

Last year (June 2014), we reported on the High Court decision in Re Charterhouse Capital [2014] EWHC 1410 (Ch) where the court upheld the insertion of drag along provisions into articles of association that were then used to force a minority shareholder to sell his shares (see Drag along issues in Charterhouse).

The minority shareholder in question appealed that decision and, in a verdict that will be welcomed by private equity investors (and others) who rely on drag along provisions as a key form of protection, the Court of Appeal has agreed with the first instance judge (Re Charterhouse [2015] EWCA Civ 536).