A “tag along” clause (also known as a “huckepack”) protects minority shareholders in the event of a takeover by third parties. Where a majority shareholder sells its shares to a third party, the minority shareholder has the right to be part of the transaction and to sell its shares to the same third-party buyer at the same price and on similar terms. Therefore, if the third party wishes to acquire the shares, it must be prepared to acquire ALL the outstanding shares. The advantage for the minority shareholder is that they can avoid being in business with an undesirable new co-owner. It also ensures that all shareholders receive similar takeover offers and protects smaller shareholders from being forced to accept much less attractive offers. One of the flaws of The Tag Along rights is that there can be long delays in selling shares. (6) to grant existing shareholders the right to authorise future shareholders. .