Tag-Along

This gives minority shareholders the right to join in any sale of shares by majority shareholders, ensuring that if the majority sells their stake, the minority can sell their shares under the same terms.

Considerations:

• Proportional Participation: How the minority's participation is calculated when the majority sells.

• Equal Treatment: Ensuring minority shareholders receive the same price and terms as the majority in a sale.

• Impact on Sale Dynamics: How these rights might influence the overall attractiveness of a sale to potential buyers, knowing that they may need to purchase a larger portion of the company.

Also see drag-along rights.