Tag-Along Rights
A contractual obligation 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. Also referred to as "co-sale rights".
Investopedia Commentary
Tag-alongs effectively oblige the majority shareholder to include the holdings of the minority holder in the negotiations in order to facilitate the possibility that a tag-along right is exercised.
Related Links
What Are Corporate Actions?
The Basics of Mergers and Acquisitions
See also: Drag-Along Rights, Minority Interest, Venture Capital
Also spelled: tag-along rights, TagAlong Rights