TAG ALONG, RIGHT OF ACCOMPANIMENT IN STARTUPS

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The tag along or right of accompaniment, which prevents the entrepreneur from selling shares and leaving the company, unless the exit is provided on the same terms to investors. The "tag along" right is a right of access to clause to be included in the partnership agreement (+) to protect the investors who fund the start-up. With this right, investors have the right to sell their shares together with the entrepreneur in case the latter decides to sell his shares. This prevents the majority shareholder from being able to sell his shares to a third party without including the minority shareholders, which could lead to a situation where the latter are forced to keep their shares or sell them at a lower price. In short, the tag-along right is a protective measure for investors in a company sale transaction.

Typical example of a tag along clause

"____________ capital of the company of an entrepreneurial partner, the investing partners shall have the right ____________ with that entrepreneurial partner ____________ more than 50% of the shares of the company the investing partners".