Tag-Along Rights | Practical Law

Tag-Along Rights | Practical Law

Tag-Along Rights

Tag-Along Rights

Practical Law Glossary Item 8-382-3864 (Approx. 2 pages)

Glossary

Tag-Along Rights

Also known as piggyback rights and 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.