Many shareholders' agreements include tag along clauses. The provisions of tag along clauses differ but the example below gives a general illustration.


Example: If shareholder X wants to sell its shares and finds a buyer, the other shareholders in the company has the right (tag along right) but not the obligation to sell their shares on the same terms as shareholder X.


One of the purposes of tag along rights is to ensure that all shareholders has the same incentives regarding the development of the company.