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Simple English definitions for legal terms
key person
Read a random definition: Regulation J
A quick definition of key person:
A key person is someone who is very important to a business. They are usually responsible for making the business successful. Another name for a key person is a key man.
A more thorough explanation:
Definition: A key person is an important officer or employee who is primarily responsible for a business's success. They are also known as a key man.
Example: John is the CEO of a successful tech company. He has been with the company since its inception and has played a crucial role in its growth and success. He is considered a key person because his leadership and expertise are essential to the company's continued success.
Explanation: In this example, John is the key person because he is the CEO and has been instrumental in the company's success. If he were to leave the company, it could have a significant impact on the business's operations and profitability. Therefore, it is important for the company to have a plan in place to mitigate the risk of losing a key person.