change of control clause
A contractual provision which gives a party to an agreement enhanced protection if the controlling shareholding of the other party is transferred. In commercial contracts a change of control clause will often give the party who is not subject to a change in ownership the right to terminate the agreement in the event of a change of control of the other party. In employment contracts, a change of control clause entitles the employee to a specified payment or enhanced notice period if their employer is taken over and the takeover results in dismissal by their employer or a material reduction in the employee's responsibilities leading to constructive dismissal within a specified time.
USA
Also known as change of control.
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.
Related links

Practical Law Dictionary. Glossary of UK, US and international legal terms. . 2010.

Look at other dictionaries:

  • 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… …   Law dictionary

  • Clause IV — historically refers to part of the 1918 text of the British Labour Party constitution which set out the aims and values of the party. Before its revision in 1995, its application was the subject of considerable dispute. Contents 1 Text 2… …   Wikipedia

  • Control flow — Not to be confused with Flow control. In computer science, control flow (or alternatively, flow of control) refers to the order in which the individual statements, instructions, or function calls of an imperative or a declarative program are… …   Wikipedia

  • Control — Contents 1 Entertainment, sports and games 1.1 Literature 1.2 Film 1.3 …   Wikipedia

  • Control order — A control order is an order made by the Home Secretary of the United Kingdom to restrict an individual s liberty for the purpose of protecting members of the public from a risk of terrorism . Its definition and power were provided by Parliament… …   Wikipedia

  • Commerce Clause — United States of America This article is part of the series: United States Constitution Original text of the Constitution Preamble Articles of the Constitution I · …   Wikipedia

  • Dormant Commerce Clause — The Dormant Commerce Clause, also known as the Negative Commerce Clause, is a legal doctrine that courts in the United States have inferred from the Commerce Clause in Article I of the United States Constitution. The Commerce Clause expressly… …   Wikipedia

  • Equal Protection Clause — The Equal Protection Clause, part of the Fourteenth Amendment to the United States Constitution, provides that no state shall… deny to any person within its jurisdiction the equal protection of the laws. [… …   Wikipedia

  • Grandfather clause — A grandfather clause is a term used in U.S. English for an exception that allows an old rule to continue to apply to some existing situations, when a new rule will apply to all future situations. It is often used as a verb: to grandfather means… …   Wikipedia

  • Citizenship Clause — United States of America This article is part of the series: United States Constitution Original text of the Constitution Preamble Articles of the Constitution I · …   Wikipedia

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”