Surrender of Class B Ordinary Share Clause Samples

The Surrender of Class B Ordinary Share clause outlines the conditions under which holders of Class B ordinary shares must relinquish or return their shares to the company. Typically, this clause specifies triggering events such as a merger, acquisition, or failure to meet certain performance milestones, at which point the shares are either cancelled or converted. Its core practical function is to ensure that Class B shares, which often carry special rights or privileges, are only retained under specific circumstances, thereby protecting the company and other shareholders from potential misuse or unintended accumulation of control.