When does a CEO get a condition precedent?
The CEO might only receive bonuses if the company achieves revenue or profit targets outlined in the contract. Retirement terms can also include condition precedents. Pensions typically are paid only after an employee has completed a certain number of years of work in good standing at a company.
What are condition precedents in a business contract?
Business contracts can feature numerous condition precedents that dictate the handling of different activities. The contract might include a clause that requires the parties to seek arbitration in case of any disputes before litigation can be sought in court.
What does disclosure mean in a private m & a?
Disclosure—share purchase. This Practice Note describes the disclosure exercise that a seller carries out in a private M&A (share purchase) transaction. In the disclosure letter, the seller makes disclosures against warranties given in the share purchase agreement (to limit liability for statements made in the warranties).
What is a disclosure letter for a private limited company?
Disclosure letter. A key document in any acquisition of the shares in, or the business and assets of, a private limited company.
How are public companies required to disclose legal proceedings?
SEC Regulation S-K, Item 103, titled “Legal Proceedings,” sets forth the types of legal proceedings a public company is required to publicly disclose. When companies disclose investigations, they often include such disclosure in the “Legal Proceedings” sections of their public filings.
Disclosure letter. A key document in any acquisition of the shares in, or the business and assets of, a private limited company.
When is disclosure of a fact deemed to be disclosure?
Disclosure of any fact, circumstance or information in any section of the Disclosure Letter shall be deemed to be disclosure of such fact, circumstance or information with respect to any other sections of the Disclosure Letter if it is reasonably apparent that such disclosure relates to one or more of all of such sections. Disclosure Letter.
When is disclosure required under the ASC 450?
With respect to unasserted claims, ASC 450 states that disclosure is required if there has been a “manifestation by a potential claimant of an awareness of a possible claim” and the claim is at least “reasonably possible.” ASC 450 does not state whether the commencement of an investigation is a manifestation of awareness of a possible claim.