Other Potential Effects Clause Samples
The "Other Potential Effects" clause outlines additional consequences or outcomes that may arise from the agreement or a specific event, beyond those explicitly stated elsewhere in the contract. This clause typically covers indirect, secondary, or unforeseen effects, such as reputational damage, regulatory implications, or impacts on third parties, which might not be immediately obvious. Its core practical function is to ensure that all parties are aware of and consider a broader range of possible outcomes, thereby allocating risk more comprehensively and reducing the likelihood of disputes over unanticipated consequences.
Other Potential Effects. The Units are registered under the Exchange Act, which requires, among other things that the Partnership furnish certain information to its Unit holders and to the Commission and comply with the Commission’s proxy rules in connection with meetings of, and solicitation of consents from, Unit holders. Registration and reporting requirements could be terminated by the Partnership if the number of record holders falls below 300, or below 500 if the Partnership’s total assets are below $10 million for three consecutive preceding fiscal years. The Partnership reported a total of 1,909 limited partners as of its most recent fiscal year end, but the Purchasers are offering to purchase up to 20,986 Units. Accordingly, it is possible that the Offer could result in the total number of Unit holders falling below the foregoing 300 holder level. As disclosed by the Partnership in its public reports, however, there has never been a public trading market for the Units and none is expected to develop, so the Partnership’s status as a public company will not affect a trading market in the Units. While the Partnership’s Agreement of Limited Partnership requires that all Unit holders be provided annual audited financial statements, quarterly interim financial statements and timely reports providing other information regarding the operations and condition of the Partnership, a change in the Partnership’s status as a public company could reduce the information available to Unit holders about the Partnership in the event the information required by the Partnership Agreement is not as extensive as that provided in reports required to be filed by public companies under applicable rules of the Securities and Exchange Commission.
Other Potential Effects. The Units are registered under the Exchange Act, which requires, among other things that the Company furnish certain information to its Unit holders and to the Commission and comply with the Commission’s proxy rules in connection with meetings of, and solicitation of consents from, Unit holders. Registration and reporting requirements could be terminated by the Company if the number of record holders falls below 300, or below 500 if the Company’s total assets are below $10 million for three consecutive preceding fiscal years. The Company reported a total of 3,404 members as of its most recent fiscal year end, but the Purchasers are offering to purchase up to 1,400,000 Units. Accordingly, it is possible that the Offer could result in the total number of Unit holders falling below the foregoing 300 holder level. As disclosed by the Company in its public reports, however, there has never been a public trading market for the Units and none is expected to develop, so the Company’s status as a public company will not affect a trading market in the Units. A change in the Company’s status as a public company could reduce the information available to Unit holders about the Company in the event the information required by the Operating Agreement is not as extensive as that provided in reports required to be filed by public companies under applicable rules of the Securities and Exchange Commission.
Other Potential Effects. The Shares are registered under the Exchange Act, which requires, among other things that the Corporation furnish certain information to its Shareholders and to the Commission and comply with the Commission’s proxy rules in connection with meetings of, and solicitation of consents from, Shareholders. Registration and reporting requirements could be terminated by the Corporation if the number of record holders falls below 300, or below 500 if the Corporation’s total assets are below $10 million for three consecutive preceding fiscal years. The Corporation reported a total of 631 shareholders as of its most recent fiscal year end, but the Purchasers are offering to purchase up to 40 Shares. Accordingly, it is not possible that the Offer could result in the total number of Shareholders falling below the foregoing 300 holder level.
Other Potential Effects. The Shares are registered under the Exchange Act, which requires, among other things that the Corporation furnish certain information to its Shareholders and to the Commission and comply with the Commission's proxy rules in connection with meetings of, and solicitation of consents from, Shareholders. Registration and reporting requirements could be terminated by the Corporation if the number of record holders falls below 300, or below 500 if the Corporation's total assets are below $10 million for three consecutive preceding fiscal years. The Corporation reported a total of 4,600 shareholders as of its most recent fiscal year end, but the Purchasers are offering to purchase up to 145,000 Shares. Accordingly, it is possible that the Offer could result in the total number of Shareholders falling below the foregoing 300 holder level. A change in the Corporation's status as a public company could reduce the information available to Shareholders about the Corporation if the information required to be provided to Shareholders by the Corporation's Articles and Bylaws is not as extensive as that provided in reports required to be filed by public companies under applicable rules of the Securities and Exchange Commission.