Define: Economic Interest

How is Economic Interest defined in a legal contract?

• Economic Interest means a holder's share of an entity's profits, losses, and distributions as per the agreed upon terms, with no inclinations or rights to participate in the entity's management or contribute to any decisions of its members.
  Seen in 123 SEC filings.
• Economic Interest means a person's right to share in the profits, losses, and distributions from an entity, excluding other rights of a member like voting rights or participation in the entity's management. Seen in 104 SEC filings.
• Economic Interest means owning more than a negligible legal or equitable interest, without personal involvement in the management of that interest unless it could be significantly affected by a legal decision.
  Seen in 103 SEC filings.
• Economic Interest means a person's ability to share in the net income, net loss, or similar profits of a partnership and to receive payouts from it, but does not include any other rights of a partner like voting or managing the partnership.
  Seen in 64 SEC filings.
• Economic Interest means a member's share of the company's net profits, net losses, and distributions, without any right to participate in the management or affairs of the company, or to vote on any decision of the members or managers.
  Seen in 55 SEC filings.
• Economic Interest means the right to accrue distributions and allocations of income, gain, and loss from an entity, excluding any additional rights of a member, such as the right to vote or participate in management.
  Seen in 54 SEC filings.
• Economic Interest means a person's right to income, losses, deductions, credit, or similar benefits from a company, but does not include any other rights of a member, including voting rights or participation in management.
  Seen in 50 SEC filings.
• Economic Interest means a member's share of a company's net profits, net losses, and distribution rights, excluding any right to vote, consent, or participate in any decisions of the members.
  Seen in 47 SEC filings.

Note: The Genie AI Legal Assistant pulled this data out of the SEC EDGAR Database of 500,000 records from the past 22 years of filings. We regularly update this page as new filings and definitions come in.

Search EDGAR for 'Definitions of economic interest' yourself to verify these results. We are always keen to point people to source documents.

‍

Which definition should you use?

🤔 Our AI Legal Assistant has combined and improved the above descriptions to create market-standard 'Genie definitions' below, with guidance on which documents and which industry to use for each.

‍

Genie Definition 1

• Economic Interest means a party's right to share in [entity]'s profits, losses, and distributions, excluding participatory or managerial rights.

Relevant Contract Types

• Partnership Agreement
• Investment Agreement
• Shareholder Agreement
• Joint Venture Agreement

Relevant Circumstances

• When profits, losses and distributions in an entity must be shared
• When an investor is acquiring stake in a business
• When business partners are defining their shares in a partnership
• When shareholders are determining their respective interests in a company

Relevant Sectors

• Finance
• Real Estate
• Technology
• Healthcare

‍

Genie Definition 2

• Economic Interest means the proportional legal or equitable financial stake held by an individual or entity.

Relevant Contract Types

• Mergers & Acquisitions Agreement
• Equity Investment Agreement

Relevant Circumstances

• When a business is being acquired or merged
• When an entity is making an equity investment in a business

Relevant Sectors

• Investment Banking
• Private Equity
• Venture Capital

‍