If you need a template for a pooling agreement, you can download an example here. 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. In accordance with Section 7.31 of the RMBCA, a voting contract is valid if three conditions are met: this agreement must clearly state the names of the parties between whom the agreement is concluded. These include the shareholders who transfer the voting rights and the agent to whom the rights are transferred. Once a valid administrative agreement is in effect, the agreement may be amended or terminated, either by an agreement of all shareholders of a company at the time, or in accordance with the terms of the agreement. When a company „enters the stock market“ by listing its shares on a national exchange, all existing management agreements are automatically suspended. RMBCA, Section 1.40 (18A).
Voting agreements offer several advantages over proxy 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. The most common types of shareholder agreements are: n. a trust that asks the agents of a company to elect a board of directors and vote on other issues at a shareholder meeting. Proxy voting is usually provided by current directors to ensure continued control, but occasionally a voting right represents a person or group attempting to take control of the company. (See company, shareholder, shareholder, agent) Such agreements are also called voting or shareholder control agreements, vote pooling agreements, because they are used to control the business of the company. With this strategy, a group of shareholders agrees to vote in advance for the directors, making it more difficult to influence the vote. It is a matter of grouping the rights related to the shares and using them as a unit to obtain a majority in the voting process.