- change of control
1) Provision in an agreement triggered if a company changes ownership (e.g., bank calls in loan, contract is terminated).2) A change of control clause allows one party to terminate a contract if the other party is taken over. Change of control clauses are normally only put in long term contracts such as joint ventures where the identity and ownership of the other party is important.USAAlso known as change of control clause.A provision in an agreement giving a party certain rights (such as consent, payment or termination) in connection with a change in ownership or management of the other party to the agreement. Not all change of control provisions are triggered by the same action. For example, a change of control may be triggered by a sale of more than 50% of a party's stock, a sale of substantially all the assets of a party or a change in a majority of the board members of a party.
Practical Law Dictionary. Glossary of UK, US and international legal terms. www.practicallaw.com. 2010.