Change in Control

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.

Corporate Level

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.

Individual Level

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 the change in the ownership structure of the company.