Add tag in the Litigation Agreement

Aug 6th, 2022
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How to add tag in the Litigation Agreement

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Disinheritance is emotionally and financially troubling. It shatters long-held family expectations. Decades-old estate plans are changed. The cause of the interference is easily suspected - and sometimes is crystal clear. The interfering actor may be an errant caregiver, an addicted sibling or other undue influencer. Disinheritance is not an isolated event - even though it is often a product of isolation - the isolation of an elderly parent by a wrongdoer against children, grandchildren, friends and neighbors. While some victims of wrongful disinheritance see it as a natural outgrowth of wrongful isolation, others are absolutely surprised. The disinheritance was not expected. The abused beneficiaries look around and wonder how they can pursue an estate case. Theyve not done this before. Theyve never seen this before. We who litigate these estate and trust disinheritance cases see it dozens and dozens of times each year. These cases are a docHub part of our litigation practice. P

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The phrase Tag Along means to follow along after someone; to go along with someone. Example of Use: The family dog tagged along after the children wherever they went.
Tag-along rights also referred to as co-sale rights, are contractual obligations used to protect a minority shareholder, usually in a venture capital deal. If a majority shareholder sells his stake, it gives the minority shareholder the right to join the transaction and sell their minority stake in the company.
Tag-Along Rights If a shareholder sells their shares to a third-party the other shareholders have the right to force the third party to buy their shares on the same terms.
The drag along clause requires the minor shareholder to sell their shares. The tag along clause requires the minor shareholder to be allowed to join in on a sale. Both clauses are designed to give the minor shareholder the rights to receive the same price, terms and conditions as any other seller.
Drag-along rights and tag-along rights are important forms of investment realisation in a shareholders agreement. Drag-along rights favour the majority shareholder while tag-along rights are more beneficial to the minority shareholder.
For example, if you own 10% of the companys shares and you have a tag along right, you would be given the opportunity to sell 10% of the total parcel of shares that are being sold. This type of clause would typically result in shareholders selling some of their shares, but none of them being able to sell all of them.
The tag-along clause itself grants the minority shareholder the right (but not the obligation) to participate in the sale planned by the majority. The majority shareholder must notify all other minority shareholders covered under tag-along provisions and allow them to join in the transaction.

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