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.

How a “tag along” right operates

Where the majority shareholder decides to sell their shares, this clause gives the minority shareholder the right to tag along with the sale.

This means the minority shareholder may sell their shares to the same purchaser on the same terms and conditions.

Why this clause may be important for a minority shareholder

This clause helps prevent a minority shareholder from being stranded with an outside investor and with little or no effective control over the company.

Where this clause is already included

This Tag Along Clause is already included in the following Shareholders’ Agreements:

• Shareholder Agreement - Long - New Share Issue - Minority Shareholder Bias
• Shareholder Agreement - Long - No Share Issue - Minority Shareholder Bias

Tag Along Clause is part of Corporate. Just £38.50 + VAT provides unlimited downloads from Corporate for 1 year.