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 ?
The statutory requirements for voting trust agreements in the MBCA and D.G.C.L.
When a voting trust agreement is signed, the trustee shall prepare a list of the names and address of all owners of beneficial interest in the trust, together with the number and class of shares each transfer to the trust, and deliver copies of the list and agreement to the corporation's principal office.