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Simple English definitions for legal terms
clean house
Read a random definition: stay of execution
A quick definition of clean house:
Term: CLEAN HOUSE
Definition: When a company wants to make big changes, they might "clean house" by firing a lot of people in management positions. This makes room for new people to come in and take over. It can also mean selling stocks or investments that don't meet someone's needs.
A more thorough explanation:
Definition: To clean house means to discharge a large number of employees, especially those in management positions, in order to bring in new employees. It can also refer to selling securities that do not meet an investor's requirements.
- After the company's profits fell for the third quarter in a row, the CEO decided to clean house and let go of several top executives.
- The investment firm had to clean house and sell off some of their stocks that did not meet their clients' investment criteria.
These examples illustrate how the term "clean house" is used in business contexts. In the first example, the company is struggling and the CEO decides to make significant changes by letting go of top executives. This is a drastic measure that is often taken when a company is in trouble and needs to restructure. In the second example, the investment firm needs to sell off some of their stocks that do not meet their clients' investment criteria. This is a common practice in the financial industry, where investors have specific requirements for the types of securities they want to invest in.