Glossary · Regional
Tag-along / drag-along rights
Definition
Shareholder-agreement clauses common across LatAm cap tables. Tag-along lets minority holders join a sale on the same terms as a majority seller; drag-along lets a majority holder force minority holders to sell alongside them.
Why it matters for a secondary
Both clauses directly shape whether — and how — a secondary sale can happen at all, since they can require other shareholders’ participation or consent before a transfer closes.
Frequently asked questions
Does this term apply the same way everywhere in Latin America?
No. Each country in this glossary has its own regulator, corporate forms, and tax rules — this term is specific to the country tagged above. Check the linked country page for the fuller picture.
Is this legal or tax advice?
No. This is orientation for investors and allocators, not legal or tax advice. Confirm current rules with a licensed adviser in the relevant country before acting on anything here.