Tag-Along Rights
Content
Definition
Tag-Along Rights protect minority shareholders by allowing them to join in when a majority shareholder sells their stake, ensuring they can sell their shares under similar terms.
Usage and Context
Tag-along rights let minority shareholders sell their shares under the same conditions as majority shareholders.
Frequently asked questions
- What is a tangible net worth? Tangible net worth measures the value of a company`s physical assets minus its liabilities, without including intangible assets like goodwill.
- What is an example of a drag-along tag-along clause? A drag-along clause forces all shareholders to sell if the majority decides to sell; a tag-along clause gives minority shareholders the right to join in the sale.
- What are minority shareholder drag along rights? Drag-along rights allow majority shareholders to compel minority shareholders to participate in the sale of a company under the same terms and conditions.
Benefits
Tag-along rights allow minority shareholders to sell shares on the same terms as majority shareholders.
Conclusion
Tag-along rights allow minority shareholders to sell their shares on the same terms as the majority.
