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.
The Oregon Voting Trust of Shares in a Closely Held Corporation is a legal entity established to manage the voting rights of shareholders in closely held corporations based in Oregon. This trust provides a mechanism to consolidate voting control in situations where multiple shareholders have common interests or need to make collective decisions. In the context of closely held corporations, where a few individuals usually hold a significant portion of the company's shares, a Voting Trust can be an effective tool to streamline decision-making processes and ensure a coherent voting strategy. By pooling together the voting rights of participating shareholders, the trust can exercise these rights collectively, representing the interests of all involved parties. There are different types of Oregon Voting Trusts of Shares in Closely Held Corporations, including: 1. Statutory Voting Trust: This type of trust is established under the Oregon Business Corporation Act and is subject to specific regulations outlined in the statute. It enables participating shareholders to transfer their voting rights to the trust, where a trustee is appointed to exercise these rights on their behalf. 2. Voting Agreement Trust: This trust is formed through a voting agreement among the shareholders of a closely held corporation. The agreement outlines the terms and conditions under which the voting rights are transferred to the trust, as well as the powers and responsibilities of the appointed trustee. 3. Proxy Voting Trust: In this type of trust, shareholders assign their voting rights to a designated proxy, who acts in their best interests during shareholder meetings. The proxy may be an individual or an entity, such as a trust, appointed by the shareholders to represent and vote on their behalf. The Oregon Voting Trust of Shares in Closely Held Corporation offers several benefits to shareholders. It can simplify decision-making, facilitate strategic planning, and enhance the overall governance structure of closely held corporations. Furthermore, it can provide a unified voice for shareholders, prevent conflicts of interest, and protect their voting rights. It's important for shareholders considering the establishment of an Oregon Voting Trust to consult with legal professionals specializing in corporate law to ensure compliance with relevant regulations and to craft a trust agreement that accurately reflects the specific needs and objectives of the shareholders involved.
