tag along right

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 the shares benefiting from the rights. The tag along rights act as protection for the minority holders in case the majority chooses not to exercise its drag along rights.
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+ tag along rights / piggyback rights / co-sale rights
Tag-along rights are the right to participate in another person's negotiated sale of its equity. They enable certain equity holders to force a selling equity holder to include their equity in the sale on a pro rata basis. They are common provisions in stockholders agreements and LLC agreements and act as protection for the minority holders.
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Practical Law Dictionary. Glossary of UK, US and international legal terms. . 2010.

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  • 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

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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

  • 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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