Voting agreements may include the granting of an agent to another party for the exercise of the vote. This agreement lies somewhere between the agent and the voting contract – the shareholder remains the shareholder or the data set, but the right to choose the share is transferred to another. Section 21.367 of the Code provides that a shareholder may vote personally or by written proxy to another person. A power of attorney is only valid for 11 months, unless otherwise provided by the instrument. A procurator is not irrevocable, unless the power is irrevocable ( 1) strikingly indicates that it is irrevocable and (2) the agent is “linked to an interest”, i.e. the right to vote is not only the transfer of voting rights, but that the agent has an interest in the shares, such as.B. to choose the shares until the debt is paid by the right to vote. In the United States, companies are required to submit their voting rights agreements to the Securities and Exchange Commission (SEC) SECSEC bids are financial statements, periodic reports and other official documents that state-owned enterprises, dealers and insiders must submit to the U.S. Securities and Exchange Commission (SEC). The SEC was created in the 1930s with the aim of limiting manipulation and fraud to shares. The agreement must show how the right to vote is implemented and how the relationship between the shareholder who transfers the shares and the agent exists. At the end of the fiduciary period, shares are generally returned to shareholders, although in practice many voting trusts contain provisions that can be attributed to trusts with identical terms.
A voting trust agreement is a contractual agreement that covers the transfer of shares from a shareholder to an agent. The agreement gives the agent temporary control of shareholder voting rights. Voting Trusts are managed by the current directors of the company AdministrationThe board of directors is essentially a body composed of people elected to represent shareholders. Any public company is legally required to set up a board of directors; Non-profit organizations and many private companies – although not necessary – also form a board of directors. to prevent third parties from gaining control of the company without their (directions) participation. A voting agreement is most often used by shareholders to create uniform voting blocs. Voting trusts can be used to block a majority block by combining the voting power of several minority shareholders. It can also be used by minority shareholders to increase the power of their representation. Sometimes the voting trust can be an instrument of oppression in which a controlling shareholder convinces other minority shareholders to grant them the power of their votes (usually shareholders who are not involved in the transaction or who are very interested, such as children or grandchildren who have inherited their shares in the company) and then use that power to vote their shares against their interests.