Clawback often involves correcting financial overpayments or errors. The pension fund executed a clawback to correct overpaid benefits.
Pro Tip 2/3
Government Actions
A government uses clawback to reclaim funds from tax incentives when conditions aren't met. After the factory closed, a tax clawback was issued to the company.
Pro Tip 3/3
Legal Complications
Clawbacks can lead to legal disputes over the legitimacy of reclaiming funds. The clawback provision in the contract led to a court case.