Tag-along

Tag-along,

Definition of Tag-along:

  1. A legal right in corporate law that ensures if the majority shareholder sells his stake all minority shareholders will be allowed to participate in the deal, allowing them to sell their stakes under the same terms and conditions of the majority shareholder. This right is generally a standard part of any shareholders agreement with a purpose of protecting the interests of minority shareholders.

Meaning of Tag-along & Tag-along Definition