Voting Trust

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Voting Trust

A type of agreement by which two or more individuals who own corporate stock that carries voting rights transfer their shares to another party for voting purposes, so as to control corporate affairs.

A voting trust is created by an agreement between a group of stockholders and the trustee to whom they transfer their voting rights or by a group of identical agreements between individual shareholders and a common trustee. Such agreements ordinarily provide that control of stock is given to the trustee for a term of years, for a time period contingent upon a certain event, or until the termination of the agreement. Voting trust agreements may provide that the stockholders can direct how the stock is to be voted.

voting trust

n. a trust which solicits vote proxies of shareholders of a corporation to elect a board directors and vote on other matters at a shareholders' meeting. A voting trust is usually operated by current directors to insure continued control, but occasionally a voting trust represents a person or group trying to gain control of the corporation. (See: corporation, shareholder, stockholder, proxy)

References in periodicals archive ?
of Patent Pooling Agreements and Contracts with the Commissioner of
restricrestrictive pooling agreements that slow the pace of innovation
related patent pooling agreements. The PTO has also long published
In the group of shareholder actions we find those called "shareholding" or "pooling agreement", [this is a simple contract providing that the shareholders will vote their shares as a unit in the election of directors and other matters] (83) proxy agreement, [this is a contract that creates irrevocable proxies which take away the shareholders' power to vote their shares and vest that power in one or more of the shareholders or in other persons] (84) and voting trust [this is a contract which transfers legal title of the share to trustees, who vote the shares in accordance with the terms of the trust instrument.] (85).
In theory at least, pooling agreements offered a solution to the kinds of nonprice competition not addressed by rates agreements.
Huish's tactics were simple: make exclusive treaties with key feeder lines, block the Great Northern's expansion, and then negotiate pooling agreements based on recent market shares.