{"ok":true,"canonical_url":"https://dealroom.so/glossary/voting-trust","api_url":"https://dealroom.so/api/public/glossary/voting-trust","data_freshness":{"sba_records_through":"2026-05-31","fdic_records_through":"2026-03-31","dealroom_last_updated":"2026-06-15","timezone":"America/Chicago"},"source_summary":["Public SBA 7(a) loan records","FDIC institution data","DealRoom lender and franchise enrichment"],"term":{"slug":"voting-trust","term":"Voting trust","group":"People and paperwork","definition":"An agreement where shareholders transfer their voting rights to a trustee for a specific period. This consolidates voting power, which you need to understand if it affects control or decision-making in the target business.","what_it_means":"While uncommon in small business acquisitions, if a voting trust exists, you must thoroughly understand its terms and duration. Ensure it will not prevent you from exercising full control post-acquisition or complicate the ownership transfer process. Review the trust agreement meticulously during due diligence.","url":"https://dealroom.so/glossary/voting-trust","official_sources":[],"related":[{"slug":"due-diligence","term":"Due diligence","url":"https://dealroom.so/glossary/due-diligence"},{"slug":"partnership","term":"Partnership","url":"https://dealroom.so/glossary/partnership"},{"slug":"corporation","term":"Corporation","url":"https://dealroom.so/glossary/corporation"},{"slug":"llc","term":"LLC","url":"https://dealroom.so/glossary/llc"}],"related_questions":[{"question":"For a business owned by a trust, what citizenship and residency requirements apply to the trustee for 7(a) eligibility?","url":"https://dealroom.so/for-lenders/questions/for-a-business-owned-by-a-trust-what-citizenship-and-residency-requirements-apply-to-the-t"},{"question":"Can a business owned by a trust be eligible for a 7(a) loan if the trustee is a foreign national?","url":"https://dealroom.so/for-lenders/questions/can-a-business-owned-by-a-trust-be-eligible-for-a-7-a-loan-if-the-trustee-is-a-foreign-nat"},{"question":"How does the SBA determine affiliation between businesses controlled by a common trust?","url":"https://dealroom.so/for-lenders/questions/how-does-the-sba-determine-affiliation-between-businesses-controlled-by-a-common-trust"},{"question":"When does common ownership through a trust or estate create affiliation for size purposes?","url":"https://dealroom.so/for-lenders/questions/when-does-common-ownership-through-a-trust-or-estate-create-affiliation-for-size-purposes"},{"question":"Can I use inherited money that is currently in a trust to fund my equity injection?","url":"https://dealroom.so/sba-7a/questions/can-i-use-inherited-money-that-is-currently-in-a-trust-to-fund-my-equity-injection"},{"question":"Can a trust or an estate be an eligible borrower for an SBA 7(a) loan?","url":"https://dealroom.so/for-lenders/questions/can-a-trust-or-an-estate-be-an-eligible-borrower-for-an-sba-7-a-loan"}]},"caveats":["Definitions represent DealRoom's plain-English interpretation for buyers; verify regulatory terms against the official SBA and eCFR sources listed.","Not legal, tax, or financial advice, and not an SBA eligibility determination."],"citation":{"label":"DealRoom.so Glossary — Voting trust","url":"https://dealroom.so/glossary/voting-trust","source_type":"DealRoom Data"}}