Class Addition Procedure Sample Clauses
The Class Addition Procedure clause outlines the process by which new classes of shares or interests can be created within an entity or investment vehicle. Typically, this clause specifies the steps required for approval, such as obtaining consent from existing stakeholders or board members, and may detail the rights, preferences, and restrictions that can be assigned to the new class. By establishing a clear method for adding new classes, this clause ensures flexibility in structuring ownership or investment while maintaining transparency and governance over changes to the entity's capital structure.
Class Addition Procedure. 1. If the average daily attendance in a class exceeds two and one-half (2.5) times the "break even" ADA described above, for more than two weeks, during the first half of the semester, the class will be split into two sections.