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.
New Mexico Provision Dealing with Changes in Share Ownership of Corporations and Changes in Share Ownership of Partnership When it comes to share ownership changes in corporations and partnerships in New Mexico, there are several provisions that come into play. These provisions aim to regulate and facilitate the process of transferring ownership interests in both corporate and partnership structures. Here are some types of provisions that businesses should be aware of: 1. New Mexico Corporation Provision dealing with Changes in Share Ownership: — Share Transfer Agreement: This provision allows shareholders to transfer their ownership interests to other individuals or entities. It outlines the terms and conditions for the transfer, including the purchase price, transfer process, and any restrictions or limitations. — Right of First Refusal: This provision grants existing shareholders the first opportunity to purchase the shares being offered for sale by another shareholder. If they decline, only then can the shares be sold to an external party. — Board Approval: Depending on the corporation's bylaws, significant changes in share ownership may require approval from the board of directors or shareholders. This provision ensures that transfers are in line with the company's best interests. 2. New Mexico Partnership Provision dealing with Changes in Share Ownership: — Buy-Sell Agreement: This provision allows partners in a partnership to establish a predetermined mechanism for buying and selling ownership interests. It outlines the conditions that trigger a transfer, the valuation process, and the terms of the sale. — Consent Requirement: This provision may require unanimous consent from all partners for share transfers to occur, ensuring that all members have a say in the change of ownership. — Capital Account Adjustments: Partnerships typically have capital accounts that track each partner's equity. This provision ensures a proper adjustment of capital accounts to reflect any changes in share ownership. Keywords: — New Mexico corporation share ownership changes — New Mexico partnership share ownership transfers — Share transfer agreement in New Mexico — Buy-sell agreement in New Mexico partnership — Right of first refusal in New Mexico corporations — Board approval for share transfers in New Mexico — Consent requirement in New Mexico partnerships — Capital account adjustments in New Mexico partnerships
