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Voting Trust Certificate

A Voting Trust Certificate is a document that represents the transfer of shareholders’ voting rights to trustees. In essence, a voting trust is an arrangement where the shareholders of a company transfer their shares to a trust, and in return, they receive voting trust certificates. These certificates provide evidence of the shareholders’ beneficial ownership of the stock and entitle them to any dividends declared, but the voting rights are exercised by the trustees of the voting trust.

The purpose of a voting trust is often to consolidate voting power or to ensure that voting rights are exercised in a particular way, often for a specified period of time. This can be useful in situations where there is a concern about the continuity of management or when a group of shareholders wants to ensure that their shares are voted in a consistent manner.

In the Delaware Statutory Trust industry, such voting trusts might be used to influence the management of the DST, which is a legally recognized trust that is set up for the purpose of business, but it can also be used for investment purposes. The DST owns, manages, and administers assets for the benefit of its beneficial owners, who hold their interest through trust certificates, including potentially voting trust certificates.