Limitations on Transfers of Units Required Transfers Clause Samples

This clause defines the rules and restrictions regarding the transfer of ownership units in an entity, as well as circumstances under which a transfer may be required. It typically outlines who is permitted to transfer their units, any conditions or approvals needed before a transfer can occur, and situations—such as death, disability, or termination of employment—where a unit holder may be compelled to transfer their units to the company or other members. The core function of this clause is to control the composition of ownership, prevent unwanted third parties from acquiring interests, and ensure the entity maintains stability and continuity among its owners.