(0) items
You have no items in your shopping cart.
All Categories

    Drag Along, Tag Along Clause for Shareholder Agreement


    This drag along, tag along clause can be inserted into a shareholder agreement to govern how the sale of shares from a shareholder to an arm's length third party must be conducted.

    • The share purchase agreement must include an offer by the buyer to purchase a pro rata share of the other shareholders' shares on the same terms and at the same time.
    • The terms apply to arm's length transactions only. The clause contains a definition of which parties are not considered arm's length.

    A Drag Along, Tag Along Clause is an exit strategy that protects the rights of minority shareholders while at the same time giving majority shareholders a means to force other investors to exit at the same time.

    Download Type: Microsoft Word
    Last Updated: 19-February-2021
    SKU: 604
    Customers who bought this item also bought

    Triggering Events for Share Sales in Shareholder Agreements


    Learn about the types of events which trigger a sale of shares under a Unanimous Shareholder Agreement, and the methods used to implement the sale.

    Triggering events include:
    • right of first refusal;
    • default buy-sell;
    • shotgun or forced sale;
    • transfer on death.
    Triggering Events for Share Sales in Shareholder Agreements is a downloadable MS Word file.