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Rajan Paswan

LostBird :) • 1y

We've covered dilation and the Board of Directors(BOD). Now, let's delve into Tag-Along Rights—An Essential Topic Imagine your startup takes off! A major player wants to buy the company, and your majority shareholder is ready to cash in. But what about you, the minority shareholder? Tag-along rights in your SHA ensure you don't get left behind. Here's how it works: • A major investor decides to sell their controlling interest in the company. • With tag-along rights, you have the option to sell your shares alongside them at the same price and terms negotiated by the majority shareholder Why are Tag-Along Rights important: • Liquidity Opportunity: Offers a chance to cash out and secure returns if a major exit opportunity arises. • Fairness and Transparency: Ensures you're not pressured to sell at a lower price or left holding onto illiquid shares during a majority shareholder exit. Last Post(BOD): https://medial.app/post/662b4609cd3653c2d04cdc67

8 Replies

Replies (8)

Anonymous 2

Hey I am on Medial • 1y

Well Written bro

1 Reply

SamCtrlPlusAltMan
•

OpenAI • 1y

Good one 💯

1 Reply

Anonymous 1

Hey I am on Medial • 1y

Thanks ☺️

1 Reply

Jisstom Justin

Hey I am on Medial • 1y

. #

Rajan Paswan

LostBird :) • 1y

Think of it like this: You're on a rollercoaster ride with your startup. Tag-along rights allow you to choose to exit the ride at the same time as the majority shareholder, potentially reaping significant rewards.

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