| Tag Along Rights |
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A
procedure used to protect a minority shareholder (usually in a venture
capital deal). Basically if a majority shareholder sells their stake
then the minority shareholder has the right to join the transaction
and sell their minority stake in the company.
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Tag
alongs therefore effectively oblige the majority shareholder to include
the holdings of the minority holder in the negotiations in order to
facilitate the possibility that a tagalong right is exercised. |
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Dictionary
