voting trust certificate

Voting trust certificate

A trust in which control of a corporation is given to a few individuals, usually to support reorganization of a corporation without interference.

Voting Trust Certificate

A certificate issued by a voting trust to common shareholders. The voting trust certificate is given in exchange for common stock and gives the shareholder every right associated with the common share except voting rights. Specifically, and perhaps most importantly, the shareholder continues to receive dividends. A voting trust receives the voting rights (and legal title) to the common stock for a set period of time in order to combine the voting power of the common shareholders who set up the voting trust.

voting trust certificate

A trust-issued certificate that evidences stock ownership but reserves voting rights for the trust. Voting trust certificates are exchanged for stock when voting power must be consolidated. Thus, holders of certificates have all the usual rights of stockholders with the exception of voting rights.
References in periodicals archive ?
Both the 1956 Act and the 1966 Act define a "security" as "includ(ing) any note, stock, treasury stock, bond, debenture, evidence of indebtedness, [certificate of interest or participation in an oil, gas or mining title or lease or in payments out of production under such a title or lease,] collateral trust certificate, transferable share, voting trust certificate or, in general, any interest or instrument commonly known as a security, or any certificate of interest or participation in, any temporary or interim certificate, receipt or certificate of deposit for, or any warrant or right to subscribe to or purchase, any of the foregoing.
In Letter Ruling 9349009,(7) three trusts wanted to make substantial distributions of voting trust certificates and nonvoting common stock for estate planning purposes.
1, 2010 there were 199 holders of voting trust certificates.