Simple English definitions for legal terms
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A shareholder-control agreement, also known as a pooling agreement, is a contract between corporate shareholders that states their shares will be voted together as a unit. This means that the shareholders agree to vote in a unified manner, rather than individually, on important corporate decisions. It is also referred to as a voting agreement or shareholder voting agreement.
A shareholder-control agreement, also known as a pooling agreement or voting agreement, is a contract between corporate shareholders that stipulates their shares will be voted as a single unit. This agreement is typically used to consolidate voting power and ensure that a specific outcome is achieved during a corporate decision-making process.
For example, if a group of shareholders collectively owns a majority of a company's shares, they may enter into a shareholder-control agreement to ensure that they vote together on important matters such as electing board members or approving mergers and acquisitions.
Another example could be a group of investors who pool their resources to acquire a controlling interest in a company. They may use a shareholder-control agreement to ensure that they vote in a unified manner to protect their investment and achieve their desired outcomes.
These examples illustrate how a shareholder-control agreement can be used to consolidate voting power and ensure that shareholders with a common interest can work together to achieve their goals.