Change of control clause

This clause grants the party in favor which it was included certain privileges that can be exercised in the case of the control changes.

If the conditions described in a specific case of a change of control are met, the authorized entity will be able to exercise its rights. It may be – for example – immediate termination of cooperation, without meeting other contractual provisions or if the clause was included in the loan or credit agreement, the eligible creditor will be able – for example – to demand early repayment of the liability. The change of control itself should be defined in a specific contract, as it may refer to various events – e.g. a change in the ownership structure, a change in the management board of a given entity.

This clause is a positive development because it protects the interests of entities by enabling them to take additional actions in the event of significant changes in the person of their current contractor.


Maksymilian Marciniak, Lawyer