"The trial judge determined that the McCormick-Patterson Trust is a voting trust. We agree. By its terms the trustees are fully empowered to vote all shares of stock held by the trust. The beneficiaries retain virtually complete enjoyment of all other beneficial incidents of ownership of the company stock represented by their interests in the trust corpus, subject only to normal provisions to protect the trustees from liability for mistaken transfers of trust interests and to insure that the trust can continue to function smoothly and to meet its expenses in a timely fashion. The separation of voting rights from the other aspects of beneficial ownership is for a stated and definite period of time, and is irrevocable except by extraordinary vote of the beneficiaries to terminate the trust. The manifest purpose of the trust is to insure continuity in management of the company through the maintenance of voting control in a select group of persons."
Voting trust quotation
Show on page(s):