Voting Agreement | Practical Law

Voting Agreement | Practical Law

Voting Agreement

Voting Agreement

Practical Law Glossary Item 4-382-3903 (Approx. 2 pages)

Glossary

Voting Agreement

An equity holder agrees to vote his voting interest in favor of a specific proposal requiring equity holder approval, and against any proposal in contravention of such proposal. Voting agreements are commonly used in business combination transactions to ensure the buyer that significant equity holders will vote to approve the subject transaction. A voting agreement may also include an irrevocable proxy. For an example of a voting agreement, see Standard Document, Voting Agreement.