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.
  • Available in MS Word format.
Document Type: Microsoft Word
Last Updated: 14-November-2024
SKU: 604
$2.29
Product tags
Related products
Picture of Minority Shareholder Rights in Ontario Private Companies

Minority Shareholder Rights in Ontario Private Companies

Do you know your rights as a minority shareholder of an Ontario corporation?

  • Minority Shareholder Rights in Ontario Private Companies is a 20-page paper that examines and clarifies the rights and protection afforded to minority shareholders of private companies under the Ontario Business Corporations Act.
  • The paper was written by an Ontario corporate lawyer who is an expert in the area of shareholder rights.
  • Each of the relevant sections of the Business Corporations Act is discussed, with an explanation of its terms and what it means to you as a shareholder.
  • This paper is provided in MS Word format, and is copyrighted by the author.
$14.99
Picture of Ontario Unanimous Shareholder Agreement with Special Majority Rights

Ontario Unanimous Shareholder Agreement with Special Majority Rights

Provide for special majority rights for shareholders in an Ontario company with this downloadable Unanimous Shareholders Agreement.

  • Special majority rights include a right of first refusal on minority share transfers (less than 10%), right to carry along minority shareholders on a sale of the company, and a call option to purchase the minority interest on death, disability, termination or change of control of the minority shareholder.
  • Minority shareholders have piggyback rights for change of control transactions, and a put option to sell their interest on death, disability, termination or change of control of the minority shareholder.
  • Minority shareholders must waive certain dissenting rights.
  • Available in MS Word format.
  • Intended to be used only in the Province of Ontario, Canada.
$39.99
Customers who bought this item also bought
Picture of Right of First Refusal Clause for Shareholder Agreement

Right of First Refusal Clause for Shareholder Agreement

This Right of First Refusal clause can be inserted into a Shareholder Agreement to govern how a shareholder disposes of its shares.

  • If a shareholder receives an arm's length offer from a third party to purchase its shares, the selling shareholder must give the other shareholders a right of first refusal to buy the shares before selling them to the third party.
  • The clauses are downloadable and customizable.
  • These generic clauses can be used in any common law country.
  • Available in MS Word format.
$2.29
Picture of Share Repurchase / Buy-Back Agreement

Share Repurchase / Buy-Back Agreement

Use this downloadable Share Repurchase (or Buy-Back) Agreement to transfer shares from a shareholder back to the corporation.

  • The Agreement is secured by a promissory note, and the template includes a sample form of promissory note.
  • The corporation will cancel the shares after buying them back.
  • The vendor represents that the shares are free of encumbrances and security interests against them.
  • Both parties agree to take all actions necessary to complete the transaction.
  • The Share Repurchase Agreement allows the corporation to reduce the number of outstanding shares and retain share value.
  • This is a generic legal form which can be used in many jurisdictions. Available in MS Word format.
$12.49
Picture of Triggering Events for Share Sales in Shareholder Agreements

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.
  • Available as a PDF download.
$0.00
Picture of Right of First Refusal Agreement to Acquire Shares

Right of First Refusal Agreement to Acquire Shares

Grant a right of first refusal to another shareholder with this Right of First Refusal Agreement to Acquire Shares template.

  • The Agreement grants one shareholder a first right of refusal to acquire shares owned by another shareholder ('granting shareholder').
  • The right is granted pursuant to the winding up of a third shareholder (a company solely owned by the granting shareholder) and the transfer of the third shareholder's share interest to the granting shareholder.
  • This is a generic legal form which is not specific to any country or region.
  • The Right of First Refusal Agreement to Acquire Shares is available in MS Word format and is fully editable to fit your needs.
$11.99
Picture of Stock Buy-Sell / Redemption Agreement | USA

Stock Buy-Sell / Redemption Agreement | USA

Set out the provisions for dealing with the shares of a departing or deceased shareholder in this Stock Buy-Sell / Redemption Agreement for USA corporations.

  • The Agreement clarifies the procedure the corporation must follow for repurchasing or redeeming a departing or deceased shareholder's stock holdings.
  • Payment is secured by a promissory note and may be made over time.
  • The corporation may not declare or pay dividends, reorganize, merge, consolidate, sell any of its material assets, or increase the salary of any key employee or officer while any portion of the redemption price remains unpaid.
  • The departing shareholder must resign as a director and/or officer upon closing of the share purchase.
  • This template is available as a MS Word download and is fully editable to fit your specific circumstances.
  • Intended to be used by companies incorporated in the United States.
$12.49