tag along rights
a contract term providing that if a majority shareholder sells its stake in a company then the minority shareholder has the right to join the sale and sell its minority stake When a shareholder seeks to sell its interest to a third party, tag-along rights enable another shareholder to co-sell its stake in the company under the same conditions as the selling shareholder.
- piggy back rights|piggy-back rights|tag-along rights|co-sale rights
- During the tag-along period, in the event the sellers propose to make a tag-along sale each of the purchasers shall have the right to participate (a tag-along right).
- If Easteline does not exercise these tag-along rights, then Fantele has the option to compel such transfer by exercising its drag along rights.