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 ?
In addition, at NASD's request, NASDAQ is inviting stockholders that acquired Voting Trust Certificates, representing NASDAQ shares, before December 31, 2005 through the exercise of warrants issued in connection with the separation of NASDAQ from NASD, to sell those shares in the offering.
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.
Finally, Tracker has acquired, for a period of 90 days, the right to purchase Voting Trust certificates (representing certain of the shares deposited with the Voting Trust) at a purchase price per share of $1.
In IRS Letter Ruling (TAM) 9226007,(41) the decedent transferred voting trust certificates to a revocable trust.