Pooling Agreement Law and Legal Definition
A pooling agreement is also termed as a voting agreement, shareholder voting agreement, shareholder-control agreement. A pooling agreement is a contractual arrangement by which corporate shareholders agree that their shares will be voted as a unit. Therefore, a voting trust is created between a group of stockholders and the trustee to whom they transfer their voting rights. In a pooling agreement, individuals who own corporate stock which carries voting rights, transfer the shares to another party for voting needs. This is done to control the corporate affairs. Such pooling agreements may also provide the method by which stockholders can direct how the stock is to be voted.