Channelgrabber ltd free company information from companies house including registered office address, filing history, accounts, annual return, officers, charges, business activity. The tag along rights shall be exercised by the relevant offerees the tag along shareholders by delivering a notice in writing to the investor majority the tag along notice, with a copy to the company, requiring the investor majority to include in the transfer to the proposed transferee, on the original conditions, some or all of the shares owned by it, provided that the tag along shareholders shall not be required to make any representation to the proposed transferee. Investors, over the companys articles of association. Each remaining shareholder shall have the right to require that. The articles of association of the company and the companies act, 20 define tag along rights to the shareholders of a private limited company. Drag along right shall have the meaning ascribed to it in article 19. A drag along provision is a clause that allows majority shareholders to force the minority shareholders to join in on a sale of their shares. The first compels minorities to support through sale of their own shares a majority shareholders proposed sale of the whole company. A brief introduction to unanimous shareholder agreements by. When a majority shareholder sells their shares, a tag along right will entitle the minority shareholder to participate in the sale at the same time for the same price for the shares. Tag along and drag along rights and their enforceability. Using tag along rights is a good way to offer legal and financial protection for employees and smaller investors. Sample shareholder agreement angel investors ontario. The tag along rights act as protection for the minority holders in case the majority chooses not to exercise its drag along rights.
Drag investors shall have the meaning ascribed to it in article. A tag along provision also called cosale right is a clause that allows minor shareholders to tag along with a larger shareholder or group of shareholders if they find a buyer of their shares. Drag along and tag along article of association these are specimen provisions to be added to the articles of association of a company or possibly a shareholders agreement. Shareholders agreements drag along and tag along rights. Tag along and drag along rights explained linkilaw. Tag along rights are also known as cosale rights are the inverse of drag along rights. For examples of tag along clauses, see standard clauses, tag along rights on a change of control. Rights contained in a companys articles of association for a majority of the shareholders usually more than 75% in nominal value to accept an offer to buy their shares and to force the holders of the remaining 25% to accept such an offer. Dragalong right dar is a legal concept in corporate law. Articles shall mean the articles of incorporation of the company dated.