This office lease provision states that it is an unpermitted assignment for partners to have a change in their share of partnership ownership and thus a default under the lease. Generally, this type of change in ownership is couched in those provisions dealing with changes in share ownerships of corporations.
The state of Arizona has provisions in place to address changes in share ownership of corporations and changes in share ownership of partnerships. These provisions aim to regulate the transfer of shares between individuals or entities within these business structures. One type of provision dealing with changes in share ownership of corporations is the Arizona Business Corporation Act. Under this act, any transfer of shares must comply with specific legal requirements. This includes obtaining the approval of the board of directors or the shareholders, ensuring compliance with any restrictions stated in the corporation's articles of incorporation or bylaws, and following any applicable registration or filing procedures. Additionally, the Arizona Revised Statutes outline provisions related to changes in share ownership of partnerships. Chapter 50 of Title 29 covers the Uniform Partnership Act, which governs the transfer of partnership interests. This act specifies that a partner's interest in a partnership is considered personal property and may be transferred or assigned, subject to any restrictions set forth in the partnership agreement. When it comes to different types of provisions within these frameworks, Arizona law allows for various arrangements to accommodate different circumstances. For example, a corporation may have provisions that define the conditions under which shares can be transferred, such as restrictions on transfers to non-shareholders, rights of first refusal, or limitations on the total percentage of shares that can be transferred at a given time. These restrictions are typically established in the corporation's articles of incorporation or bylaws. Partnerships, on the other hand, may have provisions that specify the process for transferring partnership interests, consent requirements from the remaining partners, or mandatory buyout provisions in certain situations. These provisions are typically found in the partnership agreement or operating agreement governing the partnership. In conclusion, Arizona has specific provisions dealing with changes in share ownership of corporations and changes in share ownership of partnerships. These provisions aim to ensure that the transfer of shares is carried out in compliance with legal requirements, while also accommodating various circumstances and protecting the rights and interests of all parties involved.
