Voting Trust

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Related to Voting Trust: proxy, Voting trust certificate

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.

West's Encyclopedia of American Law, edition 2. Copyright 2008 The Gale Group, Inc. All rights reserved.

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)

Copyright © 1981-2005 by Gerald N. Hill and Kathleen T. Hill. All Right reserved.
References in periodicals archive ?
It is rather noteworthy that the voting trustees appear to be little concerned to give prominence to their own part in the work [putting] 'this large concern on its feet.' It would be difficult to find a stronger list of names than that comprising the voting trust, it consisting of J.
At one end of the spectrum, the proxy agreement and voting trust prohibit the exertion of any direct control or influence by the foreign shareholder, yet these arrangements impose no access limitations on the subsidiary's clearance.
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The US Fed approved in October last year a voting trust agreement, which allowed Allied Bank to place shares of Oceanic Holdings in a temporary trust.
The voting trust agreement, which is subject to approval from US Federal Reserve Board, will place all Allied Bank's shares of Oceanic Holding (BVI) Limited in a trust for their eventual sale to other investors, said Allied Bank.
Carvin revoked the voting trust that controlled the 30 percent block of stock, the option agreement and claimed 80 percent ownership after firing Wortman for alleged self-dealing and making important business decisions without her knowledge.
Before consummation of the investment, and with the approval of the Board and the California Department of Financial Institutions (the "Department"), KEB placed all of its shares of California Bank in a voting trust controlled by an independent trustee pending regulatory approval of Commerzbank's acquisition of California Bank.