Voting Trust Agreement

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Voting Trust Agreement

A contract creating a trust through common shareholders in order to combine their votes at the annual meeting. Each shareholder transfers his/her voting rights to the trust while keeping title to the dividends and other rights associated with the stock. The voting trust receives legal title to the common stock and issues voting trust certificates, representing the other rights of common stock, to shareholders. The voting trust uses these shares to vote as a block. This gives participating shareholders a degree of control over the company they would not otherwise have. Generally speaking, a voting trust can only exist for a certain period of time, depending on the laws of the state in which the company is incorporated.
References in periodicals archive ?
Bernard Klein indirectly owns or controls through voting trust agreements 2,600,000 common shares, representing approximately 45 percent of the issued and outstanding common shares of the Corporation.
Since the persons who executed the voting trust agreements retained the right to sell their shares subject to such agreements without knowledge or approval of the trustee, the exact number of shares subject to the voting trusts is not known at this time.
19, 1997, pursuant to voting trust agreements with Stephen Callary and James Donoghue, officers and directors of RES.
In addition to the above shares, Schliewen has voting control over 3,700,000 common shares of Brunex for a two year period until January 19, 1997 pursuant to voting trust agreements with Stephen Callary and James Donoghue, officers and directors of RES Policy Research Inc.
In a combination of acquisition and voting trust agreements Motion Works took control of Niche with 57.