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In finance, a Change of Control occurs when there is a material change in the ownership of a company. The exact criteria that determine such a change can vary and are defined by law and through contractual agreements.

Change of Control Payments means any payment (including any benefit or transfer of property) in the nature of compensation, to or for the benefit of the Executive under any arrangement which is partially or entirely contingent on a Change of Control, or is deemed to be contingent on a change of control or ownership of ...

Updated October 8,2020: A change of control provision is an agreement where a party has certain rights, such as payment, consent, or termination. This is often related to a change in management or ownership of the opposite party.

Change of control refers to a scenario when the company's majority ownership and business decision-making powers move from one person or entity to another. It is quite common in corporarte sector where the rights are sold to potential buyers at a reasonable price. Source: Change of Control (wallstreetmojo.com)

There exists no standard definition of change of control but it does include the following transactions: A transfer of shares of the company; A complete sale of all or a substantial portion of assets of the company; Mergers and Acquisitions.

Clauses Involved For example, there could be specific criteria for the change in management if another company acquires more than 50% stake in a company, maybe sell off most of the company's assets to a third party, or maximum board members change.

There is no standard definition for ?change of control;? however, there are some common transactions in which a change of control may be triggered, including these: a sale of all or substantially all of a target company's assets. any ?merger? of the target company with another company.

Parties normally seek to include provisions in an agreement that allow for either termination or an adjustment of their rights, such as payment, upon a change of structure or ownership of the other party. This is known as a ?change of control? clause.

Difference between ownership and control Ownership is a state of having complete legal control of the status of something whereas control is to have an influence on something and contribute to its decision-making.

The change of control happens when an individual or entity currently in power decides to retire and wishes to transfer certain rights to another individual or entity willing to take up the responsibility. The rights transferred are mostly related to consent, termination, payment, etc.