Definition
Any transaction that transfers majority ownership or control of a company, typically triggering various contractual provisions like vesting acceleration, payment obligations, or approval rights. The legal definition of when your startup stops being yours.
Example Usage
The acquisition triggered change of control provisions that accelerated 50% of unvested employee options and required board approval.
Origin
Corporate law and M&A terminology dating to mid-20th century corporate governance
Fun Fact
Change of control definitions vary widely in precision, leading to disputes about whether specific transactions (like large investments) qualify.
Source: Corporate law and M&A documentation terminology
Related Terms
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See “change of control” in Corporate Speak, Gen-Z Slang, Pirate Speak, and more.
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