Tag-Along Rights
A protection that lets minority shareholders join in and sell their shares on the same terms if majority shareholders decide to sell theirs.
Quick Answer
How is a tag-along right different from a drag-along right?
Tag-along protects minority holders by letting them opt into a sale the majority initiates; drag-along does the opposite, letting the majority force minority holders into a sale whether or not they want to participate.
- Tag-along is opt-in protection for minority holders
- Drag-along is a compulsion mechanism for the majority
- Many agreements include both clauses together
The Lovie Advantage
Lovie tracks which holders carry tag-along rights so a partial sale scenario doesn't quietly leave anyone out.
See how this connects to Board of Directors. For the formal definition, see Investor.gov's glossary entry on annual reports.
Start Free with Lovie →