Voting Trust Agreement Sample For Business

State:
Multi-State
Control #:
US-02092BG
Format:
Word; 
Rich Text
Instant download

Description

The Voting Trust Agreement sample for business is a legal document that establishes a trust for managing voting rights associated with corporate stock. This agreement involves the appointment of trustees by the stockholders (beneficiaries) who wish to transfer their voting rights, ensuring continuity in corporate governance. Key features include definitions of terms, the creation and duration of the trust, transfer of shares, trustees' powers, and administration protocols. The agreement remains effective until a specified termination date, and it may be extended if agreed upon by beneficiaries. Filling instructions emphasize providing accurate personal details and stock ownership information. Use cases are relevant for attorneys, partners, owners, associates, paralegals, and legal assistants who are involved in corporate governance, share management, or succession planning. This form helps prevent disputes over voting rights and facilitates smooth transitions during corporate decisions.
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FAQ

Voting agreements are commonly used in business combination transactions to ensure the buyer that significant equity holders will vote to approve the subject transaction. A voting agreement may also include an irrevocable proxy.

The Voting Trust shall either be treated as a grantor trust under subpart E, part I of subchapter J of the Internal Revenue Code of 1986, as amended, or shall be treated as merely a custodial arrangement that is not an entity recognized for U.S. federal tax purposes, and the provisions of this Agreement shall be

A voting trust is a contract between shareholders in which their shares and voting rights are temporarily transferred to a trustee. A voting agreement is a contract in which shareholders agree to vote a certain way on specific issues without giving up their shares or voting rights.

A voting trust certificate is a document used to give temporary voting control over a corporation to one or several individuals. It is issued to a shareholder and represents the normal rights of any other stockholder, such as receiving quarterly dividends in exchange for their common shares.

A voting agreement is a contract in which shareholders agree to vote a certain way on specific issues without giving up their shares or voting rights. Voting trusts are formed for many reasons, including preventing hostile takeovers, retaining majority control, and resolving conflicts of interest.

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Voting Trust Agreement Sample For Business