On The Voting Trust In The System

.Voting trust is set up by two or more shareholders. For a fixed period, they irrevocably transfer the legal title to their stock to one or more voting trustees in exchange for voting trust certificates for a like number of shares, which are issued by voting trustees in their name. Then the voting trustees hold legal title of such shares and may vote the shares in accordance with the terms of the trust instrument. On the other hand, the certificate holders, as the beneficiaries of the voting trust, have a rightto all dividends received by the trustees.Voting trust is development and innovation of the trust system in the company domain, and is the cartier trust the shareholder power as. The function of voting trust is extremely widespread, which manifests specifically in: maintaining the minority shareholder's rights and interests; guaranteeing the company policy to continue stably; safeguarding the creditor's benefit; enhancing the policy-making efficiency and the quality; preventing hostility purchase, etc.Shareholders' voting right is not only one of significant contents of shareholders' rights, but also a meaningful means of controlling general shareholders meeting. Besides, as a powerful control means, voting right can perfect corporation governance through deciding important things of corporation. But a great number of minority shareholders are not interesting in exercising voting right. As a result, the general shareholders meetings are little function and the structures of corporation control have been full distorted and generally' abused. So, we should strengthen protecting of exercising voting right to realize the function of voting right. We can choose voting trust as a means to realiTe this purpose.The significance of voting trusts is to place the control of a corporation in the hands of a given group of men. As we all know, the power of control originates from the amount of the voting shares. Theoretically speaking, the control of a corporation is owned by all shareholders. But actually in modem corporations, the severe decentralization of shares weakens the shareholders' power of control. Through exercising the voting right in the shareholders' meetings, shareholders can realize the control to corporation. The system of voting bust is of great significance to the economy of China. In our country, the phenomena of "insider control" and "sole shareholder" are common in list companies. And the "Improvement of Corporate Governance "is a hot topic. The introduction of voting trust will be meaningful to the discussion of that topic. The functions of voting trust in Chinese corporations may include peffecting the establishment of the system of cumulative voting protecting the interest minority shareholders, stabling the operation of a corporation, smoothing the course of reorganization, assisting the AMC(Asset Management Company) to run those shares which have been conversed from debts, enriching the service content of trust corporations, and so on.