Legal Dictionary of Pakistan

voting trust

A trust in which corporate stockholders transfer their shares to a trustee for the purpose of creating a voting bloc. ( The stockholders still receive dividends under such an arrangement. Cf. VOTING GROUP "At common law there was great suspicion of voting trusts. One commentator described a voting trust as little more than a vehicle for corporate kidnapping.' This attitude has largely disappeared. State statutes now uniformly recognize the validity of voting trusts and they have received a more hospitable''iudicial reception." Robert W. Hamilton, The Law of Corporations in a Nutshell 199 (3d ed. 1991).