Tag-Along Rights

Tag-Along Rights
A contractual obligation used to protect a minority shareholder (usually in a venture capital deal). If a majority shareholder sells his or her stake, then the minority shareholder has the right to join the transaction and sell his or her minority stake in the company.

Also referred to as "co-sale rights".

Tag-alongs effectively oblige the majority shareholder to include the holdings of the minority holder in the negotiations in order to facilitate the possibility that a tag-along right is exercised.


Investment dictionary. . 2012.

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Look at other dictionaries:

  • tag along rights — Also known as piggyback rights. Common provisions in joint venture or private equity agreements, which enable certain shareholders (usually minority shareholders) to force other shareholders (who wish to sell their shares) to procure an offer for …   Law dictionary

  • tag-along rights — Also known as piggyback rights. Common provisions in joint venture or private equity agreements, which enable certain shareholders (usually minority shareholders) to force other shareholders (who wish to sell their shares) to procure an offer for …   Law dictionary

  • tag along right — Also known as piggyback rights. Common provisions in joint venture or private equity agreements, which enable certain shareholders (usually minority shareholders) to force other shareholders (who wish to sell their shares) to procure an offer for …   Law dictionary

  • Tag-along right — is a legal concept in corporate law. The right assures that if the majority shareholder sells his stake, minority holders have the right to join the deal and sell their stake at the same terms and conditions as would apply to the majority… …   Wikipedia

  • drag along rights — Rights contained in a company s articles of association for a majority of the shareholders (usually more than 75% in nominal value) to accept an offer to buy their shares and to force the holders of the remaining 25% to accept such an offer.… …   Law dictionary

  • drag-along rights — Rights contained in a company s articles of association for a majority of the shareholders (usually more than 75% in nominal value) to accept an offer to buy their shares and to force the holders of the remaining 25% to accept such an offer.… …   Law dictionary

  • Drag-along right — is a legal concept in corporate law. The right assures that if the majority shareholder sells his stake, minority holders are forced to join the deal. This right protects majority shareholders.[1] Drag along rights are fairly standard terms in a… …   Wikipedia

  • piggyback rights — Also known as piggyback rights. Common provisions in joint venture or private equity agreements, which enable certain shareholders (usually minority shareholders) to force other shareholders (who wish to sell their shares) to procure an offer for …   Law dictionary

  • co-sale rights — Also known as piggyback rights. Common provisions in joint venture or private equity agreements, which enable certain shareholders (usually minority shareholders) to force other shareholders (who wish to sell their shares) to procure an offer for …   Law dictionary

  • drag along right — Rights contained in a company s articles of association for a majority of the shareholders (usually more than 75% in nominal value) to accept an offer to buy their shares and to force the holders of the remaining 25% to accept such an offer.… …   Law dictionary

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