Closely held corporations are those in which a small group of shareholders control the operating and managerial policies of the corporation. Most, but not all, closely held corporations are also family businesses. Family businesses may be defined as those companies where the link between the family and the business has a mutual influence on company policy and on the interests and objectives of the family.
A voting trust is a device for combining the voting power of shareholders. It is not unlawful for shareholders to combine their voting stock for the election of directors so as to obtain or continue the control or management of a corporation. Some state laws limit the duration of voting trusts to a period of a certain number of years.
Guam Voting Trust of Shares in Closely Held Corporation refers to a legal arrangement where the voting rights associated with shares of a closely held corporation in Guam are transferred to a designated trustee. This arrangement is commonly used to consolidate and centralize the voting power within a corporation, especially when there are multiple shareholders involved. In a Guam Voting Trust, the trustee holds legal ownership of the shares, but the beneficial ownership and economic rights remain with the original shareholders. The trustee exercises the voting rights according to the instructions or objectives outlined in the trust agreement. This arrangement ensures a unified decision-making process and can be particularly useful in cases where shareholders need to reach a consensus or when there is a need for long-term strategic planning. There are different types of Guam Voting Trusts, each designed to meet specific requirements or address particular circumstances: 1. Perpetual Voting Trust: This type of trust lasts indefinitely until certain conditions specified in the trust agreement are met, such as the occurrence of a specified event or a certain period of time elapsing. 2. Term Voting Trust: In a term voting trust, the trust agreement sets a predetermined period within which the trustee holds the voting rights. At the end of the specified term, the shares and voting rights are transferred back to the original shareholders. 3. Purpose-specific Voting Trust: This type of voting trust is created to achieve a particular objective or fulfill a specific purpose, such as facilitating a merger or acquisition, protecting minority shareholders' interests, or resolving disputes among shareholders. 4. Majority Voting Trust: In a majority voting trust, the trustee exercises the voting rights based on the majority of the shares held in the trust. This ensures that the majority shareholders have control over the decision-making process. 5. Unanimous Voting Trust: Unlike the majority voting trust, a unanimous voting trust requires the trustee to vote in accordance with the unanimous decisions of all shareholders involved. This type of trust promotes equal decision-making power among shareholders. It's important to note that the establishment and implementation of a Guam Voting Trust of Shares in a Closely Held Corporation must comply with applicable laws, regulations, and governance provisions set forth in Guam's corporate statutes. Shareholders and trustees should seek legal advice to ensure compliance and to tailor the trust arrangement to their specific needs and objectives.
