Common use of Tag Along Clause in Contracts

Tag Along. If a bona fide purchaser offers to purchase shares constituting 51% or more of the issued share capital in the Company, the Disposing Shareholder(s) will not be entitled to sell his shareholding to such third party unless the same proportionate offer is made by the purchaser to acquire the shares of the Remaining Shareholders.

Tag Along. If a bona fide purchaser offers to purchase shares constituting 51% or more of the issued share capital in the Company, the Disposing Shareholder(s) will not be entitled to sell his shareholding to such third party unless the same proportionate offer is made by the purchaser to acquire the shares of the Remaining Shareholders. A Tag Along protects minority shareholders, in this case SBC. It means that the majority shareholders cannot sell their shares unless they ensure that the purchaser agrees to buy all the shares in the Company on the same basis.