voting trust

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Explanation of "Voting Trust"

Definition: A "voting trust" is a legal agreement where people who own shares (or stock) in a company keep their ownership but give their voting rights to someone else, called a trustee. This means that the trustee can vote on behalf of the shareholders in company matters, like deciding who will be on the board of directors.

Usage Instructions:

• Context: You would typically use "voting trust" in discussions about corporate governance, finance, or business decisions.
• When to use: Use this term when talking about how shareholders manage their voting rights in a company.

Example:

• "The shareholders created a voting trust to ensure that their interests were represented during the annual meeting."

Advanced Usage:

In more advanced discussions, you might encounter phrases like: - "The voting trust was established to protect minority shareholders' interests." - "The trustees are responsible for making informed decisions based on the shareholders' collective goals."

Word Variants:

• Vote (verb): To express a choice or opinion in a decision-making process.
• Trustee (noun): A person or organization that manages the trust and makes decisions based on the agreement.

Different Meanings:

1. Voting (noun): The act of choosing or deciding on a candidate or issue.
2. Trust (noun): A legal arrangement where one party holds property or assets for the benefit of another.

Synonyms:

• Proxy voting: When someone votes on behalf of another person.
• Shareholder agreement: A contract among shareholders that outlines how shares will be managed.

Idioms and Phrasal Verbs:

• "Trust in someone": To rely on someone to do something (not directly related to voting trusts but related to the concept of trust).
• "Vote down": To reject a proposal or candidate by voting against it.

Summary:

A voting trust helps shareholders manage their voting rights efficiently. It allows a trustee to make decisions on behalf of the shareholders, simplifying the voting process in a company.

Academic

Noun

1. an agreement whereby persons owning stock with voting powers retain ownership while transferring the voting rights to the trustees