B. Unless the voting treaty is otherwise provided, a voting contract in this section is expressly enforceable.” [A.R.S. 10-731] A voting agreement is defined as as follows in a state statute: voting agreements are generally managed by the current executives of a company as a counter-measure to hostile acquisitions. But they can also be used to represent a person or group trying to take control of a company, such as the company`s creditors. B who might want to reorganize a weakening business. Voting trusts are more common in small businesses because they are easier to manage. The voting agreement is an agreement or plan under which two or more shareholders pool their voting shares for a common purpose. It is also known as the pooling arrangement. A voting agreement is an agreement between shareholders to choose their shares in a certain way. Instead of delegating voting power to a third party, as is the case with an agent, each shareholder commits, in a voting contract, to respect the agreement. If the contract is effectively executed, any party may sue for the practical performance of the contract if another party refuses to comply with the contract. If an action is successful, the court orders the parties to vote on the shares in accordance with the voting agreement. Unlike proxy limited companies, voting agreements may apply for any length of time and should not be submitted to the company.
According to Section 7.31 of the RMBCA, a voting contract is valid if three requirements are met: voting agreements offer several advantages over limited companies. First, voting agreements are easier to conclude and wait for, as they should not be submitted to society and should not be renewed every ten years. In addition, the implementation of voting agreements may be less costly, becauase administrators may charge a fee for their services. In addition, owners are allowed to retain the entire ownership of the shares under a voting contract. Voting fiduciary contracts that must be submitted to the Securities and Exchange Commission (SEC) determine the duration of the agreement, usually for several years or until a particular event occurs.