Rights to Continue Business of Company Clause Samples
The 'Rights to Continue Business of Company' clause establishes the conditions under which the remaining owners or stakeholders may continue operating the company following a significant event, such as the departure, death, or incapacity of a member. Typically, this clause outlines the procedures for transferring ownership interests, appointing new management, or buying out the affected party’s shares to ensure business continuity. Its core function is to provide a clear framework that minimizes disruption and uncertainty, thereby protecting the ongoing operations and value of the company during transitions.
Rights to Continue Business of Company. Upon an event described in Sections 11.02(a), 11.02(b) or 11.02(c) (but not an event described in Section 11.02(c) that makes it unlawful for the business of the Company to be continued), the Company thereafter shall be dissolved and liquidated unless, within 90 days after the event described in such Section, an election to reconstitute and continue the business of the Company shall be made in writing by all of the Partners.