A Guide to Shareholder Rights
Shareholder receives priority in being paid out in the case of a liquidity event
Shareholder has the right to vote on company bylaws, board members, etc.
Tag Along Rights
Minority shareholders can sell their shares, or ‘tag along’, in the event a majority shareholders sells.
Drag Along Rights
Majority shareholders can force minority shareholders to sell shares in the case of a company merger/sale.
Existing shareholders can buy newly issued shares before it’s offered to others.