Can the investor still trade their shares when a voting trust takes - ProProfs Discuss
Advertisement

Can the investor still trade their shares when a voting trust takes over?

Asked by Harrington, Last updated: Sep 25, 2021

+ Answer
Request
Question menu
Vote up Vote down

1 Answer

John Smith

John Smith

John Smith
John Smith

Answered Sep 08, 2016

As the text says, the shareholders are given a voting trust certificate which gives the shareholders the same rights as the original shares held with the exception of voting privileges. This means that they are tradeable on the markets. Only if the shares are cancelled or halted or if the company fails its listing requirements are they not tradeable.

So, provided the company meets its listing requirements it will remain on the exchange it is listed with. Once it fails to meet its listing requirements, it is then removed. As a shareholder, you would be paying attention to the fortunes of the company. And so you may decide that holding such shares may not be in your best interests. Thus your exit option - sell the shares.

upvote downvote
Reply 

Advertisement
Advertisement
Search for Google images Google Image Icon
Select a recommended image
Upload from your computer Loader
Image Preview
Search for Google images Google Image Icon
Select a recommended image
Upload from your computer Loader
Image Preview
Search for Google images Google Image Icon
Select a recommended image
Upload from your computer Loader

Email Sent
We have sent an email to your address "" with instructions to reset your password.