Asked by Ashley Tyler on Jun 27, 2024
Verified
Nellie, an individual shareholder enters into a ________ which allows her to transfer share titles to a trustee in exchange for a voting trust certificate.
A) voting trust
B) proxy agreement
C) voting agreement
D) strategy agreement
E) trust sponsorship
Voting Trust
An arrangement where shareholders' voting rights are transferred to a trustee, usually for the purpose of ensuring unified action or to resolve conflicts.
Share Titles
The formal documents that serve as evidence of ownership of stocks or shares in a corporation.
Trustee
A person or firm that holds and administers property or assets for the benefit of a third party.
- Understand the significance of the proxy system in shareholder voting and the associated regulations.
Verified Answer
ZK
Zybrea KnightJul 03, 2024
Final Answer :
A
Explanation :
A voting trust is an arrangement where a shareholder transfers their stock shares to a trustee, receiving in return a voting trust certificate. This allows the trustee to accumulate and vote on the shares, typically to consolidate decision-making power or influence within a corporation.
Learning Objectives
- Understand the significance of the proxy system in shareholder voting and the associated regulations.
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