Voting Trust


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Related to Voting Trust: proxy, Voting trust certificate

Voting Trust

A trust that common shareholders create in order to combine their votes at the annual meeting. Each shareholder transfers his/her voting rights to the trust, while retaining 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 that they would not otherwise have. Typically, 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 ?
establish clearly that the requirements of the voting trust are not applicable to other kinds of agreements which could exist without interference of the special rules for voting trust (139).
Given the possibility for transfers of value between bond and stock holders, how did the voting trust structure work to mitigate these moral hazard conflicts?
In addition to individuals and estates, under current law only four types of trusts are permissible S corporation shareholders: QSSTs, grantor trusts, Internal Revenue Code section 678 trusts and voting trusts.
CP has demonstrated from the beginning that it is flexible on price, having improved its offer twice already, and shown flexibility on the structure of a potential combination, offering a voting trust structure as the quickest way for NS shareholders to receive consideration for their shares.
Mix III, the independent trustee for a voting trust set up to hold the Oceanic Bank Holdings shares.
Staha and Hatfield used their voting trust to return the company to a three-man board of directors in which they once again held two of the positions.
CP is also seeking a declaratory order from the STB as a means to better understand the STB's views on the proposed voting trust model ahead of any formal application.
The provision also applies to the indirect retention of voting rights gained through a voting trust or otherwise.
Immediately following the closing of the acquisition, control of RailAmerica was placed into a voting trust with R.
As Norfolk Southern previously stated, if Canadian Pacific is confident that its proposed voting trust structure works, Canadian Pacific can seek a declaratory order to that effect from the STB now.
In Letter Ruling 9349009,(7) three trusts wanted to make substantial distributions of voting trust certificates and nonvoting common stock for estate planning purposes.
GWI expects to close the transaction into a voting trust as early as Q3:2012 while it awaits formal STB approval of GWI's application to control RailAmerica's railroads.