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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Look at other dictionaries:

  • 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

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  • 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

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  • Right of first refusal — (ROFR or RFR) is a contractual right that gives its holder the option to enter a business transaction with the owner of something, according to specified terms, before the owner is entitled to enter into that transaction with a third party. In… …   Wikipedia

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  • Pre-emption right — A pre emption right is a right to acquire certain property in preference to any other person. It usually refers to property newly coming into existence. A right to acquire existing property in preference to any other person is usually referred to …   Wikipedia

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