Acquiring Fund Common Stock Sample Clauses
The "Acquiring Fund Common Stock" clause defines the terms and conditions under which the acquiring fund will issue its common stock as part of a transaction, such as a merger or acquisition. Typically, this clause outlines the number of shares to be issued, the method for determining the exchange ratio, and any restrictions or requirements related to the stock. For example, it may specify that shareholders of the acquired fund will receive a certain number of shares in the acquiring fund in exchange for their holdings. The core practical function of this clause is to ensure transparency and fairness in the allocation of ownership interests following a corporate transaction, thereby providing clarity to all parties involved.
Acquiring Fund Common Stock. At the Effective Time, each share of Acquiring Fund Common Stock issued and outstanding immediately prior to the Effective Time shall, by virtue of the Merger and without any action by the Acquiring Fund, the holder of such share or any other person, be cancelled and returned to the status of authorized and unissued shares of the Acquiring Fund, without payment of any consideration therefor.