Tag-Along Rights: Ensuring equal treatment of minority shareholders

February 15, 2024

Tag-along rights are contractual agreements that grant minority shareholders the right to sell their shares under the same conditions should a majority shareholder decide to sell their share package to a third party. These rights protect the interests of minority shareholders by ensuring that they can participate in a potentially lucrative sale process and are not excluded from the benefits offered to majority shareholders. Tag-along rights promote fair and equitable treatment of all shareholders within a company and help to strengthen investor confidence and satisfaction, which is crucial for long-term corporate stability.