Prohibited Conversion Clause Samples

The Prohibited Conversion clause restricts parties from converting certain securities, assets, or interests into another form, such as shares or debt instruments, under specified circumstances. Typically, this clause applies to convertible securities or instruments and outlines scenarios where conversion is not allowed, such as when it would breach regulatory limits or contractual thresholds. Its core function is to prevent actions that could undermine contractual agreements, regulatory compliance, or the intended structure of ownership and control.