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Change in Control

What is Change in Control?

Change in Control (also known as CIC) is a term that may refer to a situation when a company’s ownership structure changes significantly. This can happen as the result of a takeover, a merger, or a bankruptcy. In most cases, a change in control results in a new management team coming in to run the company, which can have a significant impact on the company’s operations.

Change in Control in More Detail

The term “change in control” has two main meanings. On a corporate level, it typically refers to a situation in which a company’s ownership structure changes significantly. This can be the result of a merger, a takeover, or a bankruptcy. In some cases, it may also be the result of a company’s stockholder base changing significantly as a result of a stock repurchase or sale.

On an individual level, change in control can refer to a situation when an executive’s employment contract is modified due to a change in the ownership structure of the company. For example, when an executive’s contract includes a provision that his or her employment is subject to a change in control, then a new contract may be negotiated when ownership of the company changes.

Change in control is a term that has both corporate and individual meanings. On a corporate level, it refers to a situation in which a company’s ownership structure changes significantly. On an individual level, it can refer to a situation when an executive’s employment contract is modified due to a change in the ownership structure of the company.

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