Tag-along right

Tag-along right

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 shareholder. This right protects minority shareholders. [ [http://www.investopedia.com/terms/t/tagalongrights.asp Tag-Along Rights] ] Tag-along rights are fairly standard terms in shareholders agreements.

ee also

*Drag-along right, the opposite concept
*Pre-emption right
*Right of first refusal

References

External links

* [http://www.bovespa.com.br/indexi.asp São Paulo Stock Exchange]
* [http://contracts.onecle.com/sirius/apollo.tag.1998.11.13.shtml Sample Business Contracts TAG-ALONG AGREEMENT]
* [http://slashstar.com/blogs/tim/archive/2007/03/02/the-dark-side-of-drag-along-tag-along-rights.aspx The Dark Side of Drag-Along/Tag-Along Rights]


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