Tag-Along Right
/ˈtæɡ əˌlɒŋ raɪt/
Definitions
- (n.) A contractual right allowing minority shareholders to join a sale of shares by majority shareholders to a third party under the same terms.
The shareholders exercised their tag-along rights to sell their shares on equal footing with the majority.
Forms
- tag-along right
- tag-along rights
Related terms
See also
Commentary
Tag-along rights protect minority investors by ensuring they can participate in significant share sales; drafters should clearly specify triggering events and terms.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.