Brief Definition
A change-in-control event refers to a significant shift in the ownership or management of a company that typically triggers specific provisions or clauses in contracts, agreements, or regulations.
Further Explanation
A change-in-control event refers to a significant shift in the ownership or management of a company that typically triggers specific provisions or clauses in contracts, agreements, or regulations. These events are often designed to protect the interests of stakeholders such as shareholders, employees, and executives, and they can have substantial financial and operational implications for the company.
Example:
Key triggers of Change-in-Control Event:
Mergers and Acquisitions (M&A)
Sale of Major Assets
Significant Share Ownership Changes
Change in Board Composition
Hostile Takeovers