Preferred Share Conversion Clause Samples
The Preferred Share Conversion clause defines the terms under which preferred shares can be converted into common shares. Typically, this clause outlines the conversion ratio, the process for initiating conversion (either at the option of the shareholder or automatically upon certain events), and any adjustments for stock splits or dividends. Its core function is to provide preferred shareholders with a clear mechanism to participate in the equity upside of the company, ensuring flexibility and protecting their interests in various scenarios such as a public offering or acquisition.
Preferred Share Conversion. Each of the Preferred Shares that is issued and outstanding immediately prior to such time shall be converted into one Ordinary Share on a one-for-one basis, by re-designation and re-classification, in accordance with the Company Charter (the “Preferred Share Conversion”).
Preferred Share Conversion. Immediately prior to the Effective Time, all Company Preferred Shares shall automatically be converted into Company Common Shares in accordance with the terms of Section 28.6 of the Company’s articles (the “Preferred Share Conversion”).
Preferred Share Conversion. The Preferred Share Conversion shall have been duly and validly effectuated.