What is a voting agreement?

Print Friendly, PDF & Email

A voting agreement for a North Carolina corporation is a legal contract between shareholders that outlines how they will vote on certain corporate matters. This agreement is typically used when shareholders want to ensure that they vote together as a bloc, or when certain shareholders hold a majority of the voting power and want to maintain control over the corporation.

A voting agreement may cover a range of corporate matters, including:

  1. Election of directors: The agreement may require that all shareholders vote in favor of a certain slate of directors or nominate candidates for election.
  2. Corporate actions: The agreement may require that all shareholders vote in favor of certain corporate actions, such as mergers, acquisitions, or major investments.
  3. Restrictions on transfer of shares: The agreement may restrict the transfer of shares to prevent outsiders from acquiring voting power in the corporation.
  4. Voting procedures: The agreement may outline procedures for voting, including deadlines for casting votes and how votes will be counted.
  5. Termination: The agreement may include provisions for terminating the agreement, such as a vote by a majority of the shareholders.

A voting agreement can provide certainty and stability for shareholders and can help prevent disputes over corporate matters. However, it’s important to consult with a corporate attorney before entering into a voting agreement to ensure that it complies with all legal requirements and protects the interests of all shareholders.

Will Blackton is a business lawyer based in Raleigh, North Carolina. You can reach Will at wblackton@bobllaw.com or (919) 636-5979.

How do I leave my employer to start a business?

Should I incorporate my business?

How should my company be owned?

How should I hire employees and contractors for my business?

Industry-Specific Questions for North Carolina Businesses

N.C. General Statuteswhat’s this?

N.C. Administrative CodeWhat’s this?

N.C. Secretary of StateWhat’s this?

N.C. Department of LaborWhat’s this?

N.C. Department of RevenueWhat’s this?

N.C. Case Law SearchWhat’s This?

I.R.S. E.I.N. ApplicationWhat’s This?