EFFECT ON CHANGES IN CAPITAL STRUCTURE Clause Samples
The "Effect on Changes in Capital Structure" clause defines how alterations to a company's capital structure—such as issuing new shares, repurchasing stock, or changing debt levels—impact the rights and obligations of the parties under the agreement. In practice, this clause may specify whether such changes trigger adjustments to conversion rates, voting rights, or other contractual terms, ensuring that neither party is unfairly advantaged or disadvantaged by corporate actions. Its core function is to maintain fairness and predictability in contractual relationships despite changes in the company's financial framework.
EFFECT ON CHANGES IN CAPITAL STRUCTURE. The existence of the option shall not affect in any way the right or power of the Corporation or its stockholders to make or authorize any or all adjustments, recapitalizations, reorganizations or other changes in the Corporation's capital structure or its business, or any merger or consolidation of the Corporation, or any issue of bonds, debentures, preferred or prior preference stocks ahead of or affecting the Stock or the rights thereof, or the dissolution or liquidation of the Corporation, or any sale or transfer of all or any part of its assets or business, or any other corporate act or proceedings, whether of a similar character or otherwise.