---
title: What's the difference between tag along and drag along rights?
description: Tag along and drag along rights are designed to serve completely different purposes. Find out what their key differences are.
image: https://www.turtons.com/hubfs/Blog%20Assets/Banner%20Images/Difference%20between%20tag%20along%20and%20drag%20along%20(resized).jpg
---

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25 May 2018

# What's the difference between tag along and drag along rights?

**In a [shareholders agreement](https://www.turtons.com/shareholders-agreement), tag along and drag along rights are two very different things, designed to serve completely different purposes.**

---

 

## Tag along rights

If a shareholder finds a buyer for its shares, another shareholder with tag along rights will be entitled to ‘tag along’ in the sale.

Tag along clauses are often sought by investors, so that a key shareholder (such as a founder) can’t sell its shares unless it finds a buyer willing to buy shares from all shareholders with tag along rights. Often, that means finding a buyer willing to buy the entire company.

You can learn more about tag along rights [here](https://www.turtons.com/blog/tag-along-rights-in-shareholders-agreements).

If you are an investor, these are [7 things you should look for in a shareholders agreement](https://www.turtons.com/blog/7-things-an-investor-should-look-for-in-a-shareholders-agreement).

## Drag along rights

If a critical mass of shareholders wish to sell the company, drag along rights will allow those shareholders to 'drag' all other shareholders into the sale. (Drag along clauses are sometimes referred to as 'come along' clauses.)

A drag along clause in a shareholders agreement ensures that once a critical mass exists, their plans cannot be derailed by a minority shareholder.

You can read more about drag along rights [here](https://www.turtons.com/blog/drag-along-rights).

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##### About the Author

[Greg Henry | Principal](https://www.turtons.com/blog/author/greg-henry-principal)

I support emerging companies in the construction and technology sectors with large, unusual or difficult projects and business-changing transactions. Please contact me if you have any questions related to this post.

 greg.henry@turtons.com | (02) 9229 2904

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### About Turtons

Turtons is a commercial law firm in Sydney with specialist expertise in the construction and technology sectors. We help emerging businesses:

- navigate their way through large, unusual or difficult projects, 
- improve their everyday contracting processes, and
- undertake strategic initiatives, such as raising capital, buying businesses, implementing employee share schemes, and selling businesses.

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Contact

[Greg Henry | Principal](https://www.turtons.com/blog/author/greg-henry-principal)

greg.henry@turtons.com

[![Turtons Linkedin logo](https://www.turtons.com/hubfs/linkedin-logo.png)](https://www.linkedin.com/in/greg-henry-8508421a/) 

I support emerging companies in the construction and technology sectors with large, unusual or difficult projects and business-changing transactions. Please contact me if you have any questions related to this post.

 greg.henry@turtons.com | (02) 9229 2904

### Related Posts

- [Tag along, drag along and similar clauses in a shareholders agreement](https://www.turtons.com/blog/tag-along-drag-along-and-other-exit-provisions-in-a-shareholders-agreement)
- [Tag along rights in shareholders agreements](https://www.turtons.com/blog/tag-along-rights-in-shareholders-agreements)
- [7 things an investor should look for in a shareholders agreement](https://www.turtons.com/blog/7-things-an-investor-should-look-for-in-a-shareholders-agreement)
- [How much does a shareholders agreement cost?](https://www.turtons.com/blog/how-much-does-a-shareholders-agreement-cost)
- [What is a shareholders agreement?](https://www.turtons.com/blog/what-is-a-shareholders-agreement)

### Related Posts

- [Tag along, drag along and similar clauses in a shareholders agreement](https://www.turtons.com/blog/tag-along-drag-along-and-other-exit-provisions-in-a-shareholders-agreement)
- [Tag along rights in shareholders agreements](https://www.turtons.com/blog/tag-along-rights-in-shareholders-agreements)
- [7 things an investor should look for in a shareholders agreement](https://www.turtons.com/blog/7-things-an-investor-should-look-for-in-a-shareholders-agreement)
- [How much does a shareholders agreement cost?](https://www.turtons.com/blog/how-much-does-a-shareholders-agreement-cost)
- [What is a shareholders agreement?](https://www.turtons.com/blog/what-is-a-shareholders-agreement)

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