TeachMeFinance.com - explain Voting trust certificate
Voting trust certificate -- When the stock of a company is
lodged in a voting trust so that the voting power of the stock
is confided to the trustees of the voting trust (commonly designated
voting trustees) certificates or receipts for it, called
voting trust certificates, are issued in place of and represent
ownership of the stock. The certificates are dealt in and
transferred the same as the stock and when the voting trust
terminates or is dissolved the certificates are exchanged for
the stock itself.
If dividends are declared on the stock while the voting trust
is in force they are paid to the holders of the voting trust certificates.
The certificates, in brief, are in all respects the
equivalent of the stock, with the exception that they do not
possess voting power.
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