A Tag-Along provision allows a majority owner wishing to sell its ownership in an enterprise to force the minority owners to also sell at the same terms.

Question

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A Tag-Along provision actually allows minority shareholders to join in the sale of a company on the same terms and conditions as the majority shareholders, not the other way around. It protects minority shareholders by giving them the right to exit the company under the same conditions as the majority shareholders.

A Tag-Along Provision Allows a Majority Owner Wishing to Sell