B. Unless the voting treaty is otherwise provided, a voting contract in this section is expressly enforceable.” [A.R.S. 10-731] At the end of the fiduciary period, shares are generally returned to shareholders, although in practice many voting trusts contain provisions that can be attributed to trusts with identical terms. 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 defined as as follows in a state status: 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 RMBCA, a voting contract is valid if three requirements are met: management contracts are contracts entered into by shareholders on the management of the company. Management agreements can address a wide range of issues, including the approval or payment of dividends, the identity of the company`s directors or senior executives, and the powers of the board of directors. Management agreements are so powerful that they can even be used to completely eliminate the board of directors or to give a particular shareholder the power to manage the transaction.
Due to the enormous effectiveness of management agreements, Section 7.32 of RMBCA severely limits the methods of developing a management agreement. Under the RMBCA, a shareholders` pact can be established in two ways: 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: a proxy contract is a contractual agreement in which voting shareholders transfer their shares to an agent against a voting trust certificate. This gives voting directors temporary control of the company. Voting confidence must be understood as a group of shareholders who agrees to delegate the voting rights of its shares to a third party known as the trustee of the voting trust.