Drag Along, Tag Along Clause for Shareholder Agreement

This document is a provision in a shareholder agreement that enables a majority shareholder to force minority shareholders to join in the sale of a company. The majority owner must give the minority shareholders the same price, terms, and conditions as any other seller. This is designed to protect majority shareholders because it gives buyers complete control of a company by eliminating minority owners and sells 100% of a company's securities to the buyer. Drag along rights are fairly standard terms in a stock purchase agreement.