tag-along rights

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 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 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 — A contractual obligation used to protect a minority shareholder (usually in a venture capital deal). If a majority shareholder sells his or her stake, then the minority shareholder has the right to join the transaction and sell his or her… …   Investment dictionary

  • 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

  • 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

  • drag along rights — Rights contained in a company s articles of association for a majority of the shareholders (usually more than 75% in nominal value) to accept an offer to buy their shares and to force the holders of the remaining 25% to accept such an offer.… …   Law dictionary

  • drag-along rights — Rights contained in a company s articles of association for a majority of the shareholders (usually more than 75% in nominal value) to accept an offer to buy their shares and to force the holders of the remaining 25% to accept such an offer.… …   Law dictionary

  • Drag-along right — is a legal concept in corporate law. The right assures that if the majority shareholder sells his stake, minority holders are forced to join the deal. This right protects majority shareholders.[1] Drag along rights are fairly standard terms in a… …   Wikipedia

  • piggyback 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

  • co-sale 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

  • drag along right — Rights contained in a company s articles of association for a majority of the shareholders (usually more than 75% in nominal value) to accept an offer to buy their shares and to force the holders of the remaining 25% to accept such an offer.… …   Law dictionary

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