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Corporations • Rights of Shareholders
CORP#048
Legal Definition
Shareholders who own relatively few voting shares may decide to increase their influence by agreeing to vote alike, via a voting trust or shareholder voting agreement.
Plain English Explanation
"Pooled voting" and "block voting" are like shareholder unions. It enables minority shareholders—who own so little of the company that they risk being pushed around—to team up with other shareholders to combine their votes and magnify their collective voice. This is accomplished through either a vote trust or a shareholder voting agreement.
A voting trust is a formal written agreement that gives voting power to a trustee, and is enforceable for up to 10 years.
A shareholder voting agreement is an agreement in writing to vote shares as required by the agreement, and is binding and enforceable on all signers.
A voting trust is a formal written agreement that gives voting power to a trustee, and is enforceable for up to 10 years.
A shareholder voting agreement is an agreement in writing to vote shares as required by the agreement, and is binding and enforceable on all signers.
Visual Aids
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