Tag Along Clause

This Tag Along Clause is for use in Shareholders’ Agreements where one of the parties is a minority shareholder. It is designed to protect the position of the minority shareholder where the majority shareholder decides to sell a defined percentage of shares in the company.

Where the majority shareholder decides to sell his shares, this clause gives the minority shareholder the right to tag along with the sale, i.e. to sell his shares to the same purchaser on the same terms and conditions. This prevents a minority shareholder from being stranded with an outside investor and with little or no effective control over the company.

This Tag Along Clause is already included in the Shareholders’ Agreements: “Shareholder Agreement - Long - New Share Issue - Minority Shareholder Bias” and “Shareholder Agreement - Long - No Share Issue - Minority Shareholder Bias.”

This document is in open format. Either enter the requisite details in the highlighted fields or adjust the wording to suit your purposes.

Once you have subscribed to the appropriate document folder click on the “Download Document” button below. You will be asked what you want to do with the file. It is recommended that you save the document to a location of your choice prior to viewing.

Tag Along Clause is part of Corporate Documents. Just £35.00 + VAT provides unlimited downloads from Corporate Documents for 1 year.