Tag-Along Rights

An arrangement whereby the minority shareholder has the right to sell his share The portion of registered capital of a private or public limited company
» Meer over share shares together with the shares of majority shareholder. He can “tag along” with the deal of the majority shareholder. It is required however that the minority shareholder sells his shares under the same conditions as the majority shareholder.

A variation on this arrangement is the drag-along arrangement. Hereby a (majority) shareholder has the right to force other (minority) shareholders to cooperate in selling the company. Purpose of this arrangement is to provide the buyer with all the shares. This arrangement is often included in the shareholders’ agreement.