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Rajan Paswan
Honorary Mentions - ... • 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
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