When a parent retires or leaves a business, he or she can transfer the shares to a child or child, provided the shares are then transferred to a voting trust company with known trustees. The most common types of shareholder agreements are: there are several reasons for the existence of voting agreements. This includes determining the duration of the agreement, usually for several years or until an event occurs. Voting agreements offer several advantages over proxy limited companies. First, voting agreements are easier to conclude and wait for, as they should not be submitted to society and should not be renewed every ten years. In addition, the implementation of voting agreements may be less costly, becauase administrators may charge a fee for their services. In addition, owners are allowed to retain the entire ownership of the shares under a voting contract. Details of a voting agreement, including timing and specific rights, are included in an application to the SEC. A voting agreement is an agreement between shareholders to choose their shares in a certain way.

Instead of delegating voting power to a third party, as is the case with an agent, each shareholder commits, in a voting contract, to respect the agreement. If the contract is effectively executed, any party may sue for the practical performance of the contract if another party refuses to comply with the contract. If an action is successful, the court orders the parties to vote on the shares in accordance with the voting agreement. Unlike proxy limited companies, voting agreements may apply for any length of time and should not be submitted to the company. Under Section 7.31 of the RMBCA, a voting agreement is valid if three conditions are met: an agent is best interpreted as a group of shareholders who agrees to delegate the voting rights of its shares to a third party known as the trustee of the voting trust.