Texas Voting Trust and Divestiture Agreement is a legal arrangement that allows shareholders of a corporation in Texas to transfer their voting rights to a trustee temporarily. This agreement aims to ensure the proper management and control of the corporation during certain circumstances, such as mergers, acquisitions, or other major corporate restructurings. The Texas Voting Trust Agreement involves the appointment of a trustee who will exercise the voting rights on behalf of the shareholders who have transferred their shares to the trust. This trustee acts in the best interests of the shareholders, ensuring proper decision-making and protection of their rights. The trust agreement outlines the terms, conditions, and duration of the voting trust, which may vary depending on the specific circumstances and requirements of the corporation. The Divestiture Agreement, on the other hand, refers to a specific type of Texas Voting Trust and Divestiture Agreement where shareholders agree to divest or sell their shares in a corporation. This agreement aims to facilitate the divestment process by consolidating the voting rights of the shareholders who have agreed to participate and providing a unified approach to selling their shares. There may be different types of Texas Voting Trust and Divestiture Agreements, depending on the specific needs and objectives of the shareholders and the corporation. Some of these variations include: 1. Merger/Acquisition Voting Trust and Divestiture Agreement: In the case of a merger or acquisition, shareholders may transfer their voting rights to a trust to ensure a smooth transition and consolidation of corporate operations. This agreement may involve certain conditions and requirements for the divestment of shares. 2. Corporate Restructuring Voting Trust and Divestiture Agreement: When a corporation undergoes a significant restructuring, such as spinning off a division or merging with another entity, shareholders may enter into a voting trust agreement to streamline decision-making and divest their shares in a coordinated manner. 3. Shareholder Dispute Voting Trust and Divestiture Agreement: In the event of a dispute among shareholders, where unanimity is required but cannot be achieved, a voting trust may be established to resolve the deadlock. The trust agreement allows a trustee to vote on behalf of the shareholders and may include provisions for the eventual divestment of shares to resolve the dispute. In conclusion, the Texas Voting Trust and Divestiture Agreement is a legal mechanism that allows shareholders to temporarily transfer their voting rights to a trustee. This arrangement ensures orderly decision-making and facilitates divestment processes during various corporate events. The specific types of agreements may vary, including those for mergers/acquisitions, corporate restructuring, or resolving shareholder disputes.
Texas Voting Trust and Divestiture Agreement
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A voting trust can be revocable or irrevocable; typically they are irrevocable for a period of years, or for life of the key person, or until the company is sold. But any other arrangement that suits the objectives and is within the law can be made as well.
(1) The term ?security? means any note, stock, treasury stock, security future, security-based swap, bond, debenture, evidence of indebtedness, certificate of interest or participation in any profit-sharing agreement, collateral-trust certificate, preorganization certificate or subscription, transferable share, ... Definition: security from 15 USC § 77b(a)(1) | LII / Legal Information Institute cornell.edu ? definitions ? uscode cornell.edu ? definitions ? uscode
While the proxy may be a temporary or one-time arrangement, often created for a specific vote, the voting trust is usually more permanent, intended to give a bloc of voters increased power as a group?or indeed, control of the company, which is not necessarily the case with proxy voting. Voting Trust Agreement: What it Means, How it Works Investopedia ? terms ? votingtrustagr... Investopedia ? terms ? votingtrustagr...
A voting trust is a contract between shareholders in which their shares and voting rights are temporarily transferred to a trustee. A voting agreement is a contract in which shareholders agree to vote a certain way on specific issues without giving up their shares or voting rights.
A trust formed when individual shareholders transfer both the legal title and voting rights in their shares to a trustee. The trustee then controls a unified voting block - with a stronger voice on matters of corporate governance than the individual shareholders could have on their own. voting trust | Wex | US Law | LII / Legal Information Institute cornell.edu ? wex ? voting_trust cornell.edu ? wex ? voting_trust
What is a Voting Trust? A voting trust is an arrangement where the voting rights of shareholders are transferred to a trustee for a specified period. The shareholders are then awarded trust certificates that provide evidence that they are beneficiaries of the trust.
Under a voting agreement, two or more shareholders transfer their shares to a trustee. The trustee will then vote those shares as a block ing to the terms of the agreement or the will of the majority. A voting trust gives shareholders greater voting power than if they voted separately. Voting Trust - Practical Law Canada thomsonreuters.com ? ... thomsonreuters.com ? ...
A voting trust certificate is a document used to give temporary voting control over a corporation to one or several individuals. It is issued to a shareholder and represents the normal rights of any other stockholder, such as receiving quarterly dividends in exchange for their common shares.