Voting Trust


DEFINITION of 'Voting Trust'

A legal trust created to combine the voting power of shareholders. With the establishment of the voting trust, the shareholders' legal title (their stock) and voting rights are transferred to a designated trustee for a set duration.

BREAKING DOWN 'Voting Trust'

There are many reasons stockholders may wish to form these trusts. For example, they may create one in the hopes of maintaining control within a corporation through a unified vote. Or they may want to use it as a form of protection from corporate creditors. The laws of different states usually have limitations on the duration of a trust, as it is a legally binding agreement.

  1. Voting Right

    The right of a stockholder to vote on matters of corporate policy ...
  2. Statutory Voting

    A corporate voting procedure in which each shareholder is entitled ...
  3. Proxy

    1. An agent legally authorized to act on behalf of another party. ...
  4. Voting Shares

    Shares that give the stockholder the right to vote on matters ...
  5. Cumulative Voting

    The procedure of voting for a company's directors; each shareholder ...
  6. Voting Trust Agreement

    A contractual agreement detailing the specifics of the voting ...
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