Tag Along rights, are rights granted to minority shareholders in a company. For instance, if one of the shareholders sells his stake to a third party, then the minority shareholders have the right to join the transaction and sell their minority stake in the company. Tag along rights are a standard terms in a shareholders agreements. For example; Yossi owns 30% of shares in a company and is interested in selling 5% to Danny. Matan, who owns 10%, has the right to join this venture and offer Danny to buy 5% from him, with similar conditions as to what Yossi offered.
What is “Tag Along”?
About the Author: Ifergan Dorin
Third year Law & Business (Minor- real estate), at the IDC Herzliya. her dream is to become a successful lawyer and businesswoman. In her spare time, dorin enjoy spending time with her family and friends, playing the guitar and dancing.