Tag along rights | Practical Law

Tag along rights | Practical Law

Tag along rights

Tag along rights

Practical Law UK Glossary 2-107-7361 (Approx. 4 pages)

Glossary

Tag along rights

Also known as piggyback rights. Common provisions in joint venture, private equity or venture capital 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, allowing them to sell their shares at the same time and at the same price per share, including in case the majority chooses not to exercise its drag along rights.
For examples of tag along clauses: