# What is Tag-Along Rights? Definition & Technical Mechanics

> **Source:** [SPIDITS AI Startup & Venture Intelligence Glossary](https://spidits.com/startup-glossary)  
> **Category:** Legal  
> **Canonical Citation:** [https://spidits.com/startup-glossary/tag-along-rights](https://spidits.com/startup-glossary/tag-along-rights)

## Definition
Tag-Along Rights (co-sale rights) are legal protections for minority shareholders that allow them to join in a transaction if a majority shareholder sells their stake.

## Architectural Mechanics & Deep Dive
Tag-Along Rights (also known as co-sale rights) are legal protections for minority shareholders that allow them to join in a transaction if a majority shareholder (usually a founder or major investor) sells their stake to a third party. This ensures that minority shareholders can sell their shares on the same terms and at the same price as the major shareholders, preventing them from being left behind.

## Industry Applications & Real-World Use Cases
Shareholder protection agreements

## Frequently Asked Questions

### What is the purpose of tag-along rights?
They ensure that minority shareholders (like early employees or angels) can liquidate their holdings on the same terms as major founders or VCs.

### When do tag-along rights apply?
When a key founder or major investor sells a significant portion of their stock to an outside buyer.

## Related Terminology
- [drag-along-rights](https://spidits.com/startup-glossary/drag-along-rights)
- [pro-rata-rights](https://spidits.com/startup-glossary/pro-rata-rights)
- [secondary-offering](https://spidits.com/startup-glossary/secondary-offering)

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*From the SPIDITS AI Knowledge Base (300+ terms indexed). Explore full technical definitions: [https://spidits.com/startup-glossary](https://spidits.com/startup-glossary)*