Tag-along Rights
Tag-along rights give minority shareholders the right to participate in the sale of shares when the majority shareholder sells their stake. These rights ensure that minority investors can sell their shares on the same terms as the majority, protecting their interests in case of a company’s sale or takeover. Tag-along rights are common in private equity and venture capital deals, safeguarding minority shareholders from being left behind.
Key Takeaways
- Allows minority shareholders to sell shares alongside majority shareholders.
- Protects minority interests in company sales or takeovers.
- Common in private equity and venture capital deals.
- Ensures equal sale terms for all shareholders.
