Definition
Provisions allowing minority shareholders to join a sale if majority shareholders exit—the friendlier sibling of drag-along rights. It's protection ensuring you can't get abandoned while insiders cash out.
Example Usage
When our lead investor sold their stake to a hedge fund, my tag-along rights meant I could also sell, though nobody told me about the sale until it closed.
Origin
Corporate securities law, companion provision to drag-along rights
Fun Fact
Tag-along rights are sometimes called 'co-sale rights,' making them sound cooperative rather than defensive against getting screwed.
Source: Securities law and shareholder agreements
Related Terms
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See “tag-along rights” in Corporate Speak, Gen-Z Slang, Pirate Speak, and more.
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