Ownership Continuity Clause Samples
The Ownership Continuity clause ensures that the ownership structure of a party, typically a company, remains consistent throughout the duration of an agreement. In practice, this clause may require that the majority shareholders or controlling interests do not change hands without prior consent from the other party, or it may trigger certain rights or obligations if a change in ownership occurs. Its core function is to provide stability and predictability by preventing unexpected changes in control that could affect the performance or risk profile of the agreement.
Ownership Continuity. To the Company’s Knowledge, there is no plan or intention by the Stockholders to sell, exchange, or otherwise dispose of a number of shares of Parent Common Stock received in the Transactions that would reduce the Stockholders’ ownership of Parent Common Stock to a number of shares having a value of less than forty percent (40%) of the value of all of the formerly outstanding Company Capital Stock. For purposes of this representation, shares of Company Capital Stock exchanged for cash or other property, surrendered by dissenters, or exchanged for cash in lieu of fractional shares of Parent Common Stock will be treated as outstanding Company Capital Stock.