Continued Ownership Commitment Clause Samples
The Continued Ownership Commitment clause requires certain parties, typically founders or key shareholders, to maintain a specified level of ownership in a company for a defined period. In practice, this means that these individuals cannot sell or transfer their shares below an agreed threshold, ensuring their ongoing stake and involvement in the business. This clause is commonly used to reassure investors that the original owners remain committed to the company's success, thereby aligning interests and reducing the risk of abrupt changes in control or direction.
Continued Ownership Commitment. Parent will hold a majority of its indirect ownership interest in Oncor for a period of more than five years after the closing date of the transaction.
Continued Ownership Commitment. BHE will hold a majority of its ownership interest in Oncor for a period of more than five years after the closing date of the transaction.