Change in Voting Power Clause Samples
The Change in Voting Power clause defines how shifts in the distribution of voting rights among parties are managed within an agreement or organization. Typically, this clause outlines the procedures to follow if a party's voting percentage increases or decreases beyond certain thresholds, such as requiring notification, approval, or triggering specific consequences like buyout rights or restrictions. Its core function is to maintain stability and transparency in governance by addressing the risks and implications of significant changes in control or influence among stakeholders.
Change in Voting Power. Any person or persons acting together which would constitute a "group" for purposes of Section 13(d) of the Exchange Act (other than the Company, ARC International, Inc., any subsidiary of either, or any entity beneficially owned by any of the foregoing) beneficially own (as defined in Rule 13(d)-3 under the Exchange Act) without Board approval or consent, directly or indirectly, at least forty percent (40%) of the total voting power of the Company entitled to vote generally in the election of the Board;