Document voting intentions in writing: Voting Agreement
What is a Voting Agreement?
Do you share a vision with other shareholders? A Voting Agreement can be your pact to vote accordingly. Take a cue from political campaigns. There's strength in numbers. With a Voting Agreement, you can get your pact down in writing so you can get the results you're looking for.
There's a big shareholders meeting coming up. A Voting Agreement can ensure you and those who share your vision vote the same way. After all, shareholders have big sway in corporations. But when you're divided, it can feel unstable. And if there's a lot of you? You never know what can happen. Agreeing to vote the same way doesn't necessarily guarantee any particular outcome. But it shows you're serious about coming together. A Voting Agreement can help you stick together when it counts and get the results you want.
When to use a Voting Agreement:
- You are a shareholder of a certain company and know of other shareholders who share your vision and goals for the company and would like to agree to combine your voting powers to achieve those mutually shared goals.
Sample Voting Agreement
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Voting Agreement
| THIS AGREEMENT, , is among the following Shareholders of : |
| - shares under certificate # |
| The above named shareholders at the shares indicated above will be known collectively as Shareholders and individually as Shareholder throughout this Agreement. |
1) Preliminary Recitals
| The Shareholders are all shareholders of a corporation. |
| The Shareholders have determined that it is in their best interests and in the best interest of to vote shares presently held by them. |
Therefore, in consideration of the foregoing and of the mutual covenants and undertakings set forth in this Agreement, the Shareholders agree as follows.
2) Shares Subject To Agreement
| The shares subject to this agreement are shares of the as listed herein. Shares are listed opposite the name of each Shareholder. |
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3) Voting Shares
| For the duration of this Agreement, each Shareholder will vote the Shares indicated above that Shareholder owns as follows: |
4) Termination of Agreement
| Events Triggering Termination. This Agreement will terminate on . |
5) Miscellaneous Provisions
| Necessary Acts. All parties to this Agreement will perform any acts, including executing any documents, that may be reasonably necessary to fully carry out the provisions and intent of this Agreement. |
| Notices. All notices, demands, requests, or other communications required or permitted by this Agreement will be in writing and will be deemed duly served when personally delivered to the party or to an officer or agent of the party, or when deposited in the United States mail, first-class postage prepaid, addressed to the party at the address appearing for him or her on the books and records of the Corporation, or at any other address the party may designate by written notice to the others. |
| Remedies. The parties will have all the remedies available to them for breach of this Agreement by law or in equity. The parties further agree that in addition to all other remedies available at law or in equity, the parties will be entitled to specific performance of the obligations of each party to this Agreement and immediate injunctive relief. The parties also agree that if an action is brought in equity to enforce a party's obligations, no party will assert as a defense that there is an adequate remedy at law. |
| Attorneys' Fees. In the event of any litigation concerning this Agreement between the parties to this Agreement the prevailing party shall be entitled, in addition to any other relief that may be granted, to reasonable attorneys' fees. |
| Binding on Successors and Assigns. This Agreement will be binding on the parties to the Agreement and on each of their heirs, executors, administrators, successors, and assigns. |
| Severability. If any provision is unenforceable or invalid for any reason, the remaining provisions will be unaffected by such a holding. |
| Governing Law. This Agreement will be construed according to and governed by the laws of the State of . |
| Entire Agreement. This instrument constitutes the entire agreement of the Shareholders and correctly sets forth the rights, duties, and obligations of each party and of each party to the other. Any prior agreements, promises, negotiations, or representations concerning the Agreement's subject matter not expressly set forth in this Agreement are of no force or effect. |
| Executed by the following shareholders with the intent to be legally bound. |
| THE SHAREHOLDERS |
| By: | Date: |
