Spiegel & Utrera, P.A. is a fully licensed law firm that delivers professional legal services at extremely affordable prices.
"Start, Expand, Buy, Sell Your Business Today" ON THE AIR with Larry Spiegel and host Joe Castello. Listen to our show at www.AmeriLawyer.com/radioshow
WHAT'S IMPORTANT TO YOU? Starting a Business? Anonymity? New Credit Profile? Tax Avoidance? Avoiding Probate? Tax Shelter? Asset Protection? Building a Brand? Attracting Investors? At AmeriLawyer.com we can help!
A voting trust is a device for combining the voting power of shareholders. It is not unlawful for shareholders to combine their voting stock for the election of directors so as to obtain or continue the control or management of a corporation.
Florida Statutes limit the duration of voting trusts to a period of ten years. In order to avoid the invalidation of a voting trust, the applicable statutes should be strictly complied with.
USE OF VOTING TRUSTS:
There are various situations in which a voting trust agreement may be used. It may be used when several shareholders wish to vote their respective stock as a unit. It also may be used for the special purpose of protecting corporate creditors. The general plan of a voting trust is controlled by the voting trust agreement, then the shareholders endorse their stock certificates to the voting trustee. The voting trustee surrenders these certificates to the corporation and the voting trustee receives in return new certificates issued in the name of the voting trustee, and the voting trustee votes the shares as principal, rather than as agent as in the case of proxies.
For tax purposes, the voting trust certificate takes the place of the stock it represents. Tax transactions with respect to voting trust certificates are treated as transaction affecting the stock.
A voting trust is not an association taxable as a corporation, because in itself it is not an enterprise for the carrying on of business for profit.
The Voting Trust could be a useful tool for your corporation.
Material presented on AmeriLawyer.com is intended for information purposes only. It is not intended as professional advice and should not be construed as such. The U.S. Treasury Department requires us to inform you than any information obtained from this website is not intended or written by our law firm to be used, and cannot be used by any taxpayer, for the purpose of avoiding any penalties that may be imposed under the Internal Revenue Code. Advice from our firm relating to Federal tax matters may not be used in promoting, marketing or recommending any entity, investment plan or arrangement to any taxpayer.