A contractual right given to minority shareholders (usually, financial investors in a start-up), allowing them to sell a portion of their shares to the buyer who has offered to buy shares from the majority shareholders of a company (usually, the founders in a start-up), on the same purchase terms offered to the majority.

This right is also called the right to ‘tag along’. It’s a provision that protects the rights of minority shareholders and gives them liquidity.

Terms and conditions of how and when the right can be exercised are detailed in shareholders’ agreements and or the Articles of Association of the company.