voting trust

voting trust
The transfer of title by stockholders of shares of a corporation to a trustee who is authorized to vote the shares on their behalf. One created by an agreement between a group of the stockholders of a corporation and the trustee, or by a group of identical agreements between individual stockholders and a common trustee, whereby it is provided that for a term of years, or for a period contingent upon a certain event, or until the agreement is terminated, control over the stock owned by such stockholders, either for certain purposes or for all, shall be lodged in the trustee, with or without a reservation to the owner or persons designated by them of the power to direct how such control shall be used. A device whereby two or more persons, owning stock with voting powers, divorce voting rights thereof from ownership, retaining to all intents and purposes the latter in themselves and transferring the former to trustees in whom voting rights of all depositors in the trust are pooled. Jackson v. Jackson, 178 A.2d 893, 420 A.2d 893, 895.
Agreement accumulating several owners' stock in hands of one or more persons in trust for voting purposes in order to control corporate business and affairs. It differs from proxy or reciprocal proxy in that it does not make either party the other's agent.
See also voting group
+ voting trust
A trust which holds the voting rights to stock in a corporation. It is a useful device when a majority of the shareholders in a corporation cannot agree on corporate policy.
See also voting trust

Black's law dictionary. . 1990.

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  • Voting trust — A voting trust is a trust whereby the shares in a company of one or more shareholders and the voting rights attached thereto are legally transferred to a trustee, usually for a specified period of time (the trust period ). In some voting trusts,… …   Wikipedia

  • voting trust — noun an agreement whereby persons owning stock with voting powers retain ownership while transferring the voting rights to the trustees (Freq. 1) • Hypernyms: ↑trust * * * noun : an arrangement transferring the voting rights of shares in a… …   Useful english dictionary

  • 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. There are many …   Investment dictionary

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  • voting trust certificate — n: a certificate issued as evidence of the holder s beneficial interest in a voting trust Merriam Webster’s Dictionary of Law. Merriam Webster. 1996 …   Law dictionary

  • Voting Trust Certificate — A certificate issued by the limited life trust of a corporation established to limit the control of a corporation to a few individuals. A voting trust certificate is issued to a stockholder in exchange for their common stock, and represents all… …   Investment dictionary

  • voting trust certificates — Certificates issued by voting trustees to the beneficial holders of shares held by the voting trust. Such certificates may be as readily transferable as the underlying shares, carrying with them all the incidents of ownership of the underlying… …   Black's law dictionary

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  • voting trust — Simply stated, a device whereby persons owning stock with voting powers divorce the voting rights thereof from the ownership, retaining the latter to all intents and purposes and transferring the former to trustees in whom the voting rights of… …   Ballentine's law dictionary

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