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.
Michigan Provision Dealing with Changes in Share Ownership of Corporations and Changes in Share Ownership of Partnership: In the state of Michigan, there are specific provisions in place to address changes in share ownership of corporations and partnerships. These provisions ensure that any transfer or change in ownership of shares is adequately documented, regulated, and transparent. The following types of provisions exist in Michigan to deal with such changes: 1. Share Transfer Agreements: Michigan law recognizes the importance of documenting the transfer of shares in a corporation or partnership. Share transfer agreements outline the terms and conditions under which shares can be sold, transferred, or assigned to another party. These agreements typically include information such as the selling price, the number of shares being transferred, and any restrictions or conditions surrounding the ownership change. 2. Share Purchase Agreements: In cases where an individual or entity wishes to acquire a substantial number of shares in a corporation or partnership, a share purchase agreement is often utilized. This agreement provides a clear understanding of the terms of the purchase, including the purchase price, payment options, and any warranties or guarantees associated with the shares being acquired. 3. Shareholder or Partnership Agreements: Shareholder agreements and partnership agreements in Michigan often contain specific provisions that govern changes in ownership. These agreements typically outline the rights and responsibilities of shareholders or partners, including any restrictions or requirements regarding the transfer of shares. They may also include provisions for the approval of new shareholders or partners by existing members. 4. Shareholder Approval Requirements: In certain circumstances, Michigan law may require shareholder approval for changes in ownership. For example, if an individual or entity intends to acquire a certain percentage of shares that would result in a change in control of the corporation, shareholder approval may be necessary. This provision ensures that shareholders have a say in major ownership changes that could impact the direction or management of the company. 5. Reporting and Disclosure Requirements: When changes in share ownership occur, corporations and partnerships in Michigan are often required to report such changes to the appropriate authorities. This serves to maintain transparency and provide relevant information to stakeholders, including other shareholders, potential investors, and regulatory bodies. Failure to comply with reporting and disclosure requirements may result in penalties or legal consequences. It is important for individuals, corporations, and partnerships in Michigan to familiarize themselves with these provisions governing changes in share ownership. By adhering to these regulations, parties involved can ensure that ownership changes are properly documented, regulated, and in compliance with Michigan state laws.
