Creation of a new class of voting stock (without any other rights) does not create an unlawful trust. The rationale of the
voting trust is to avoid secret uncontrolled combinations of shareholders from acquiring voting control of the
corporation. This is prevented by requiring that voting trusts be disclosed to the corporation. Creation of this new class
of voting stock is fully disclosed. State law does not require that each class of stock created have voting and all other
rights of each other class. One limitation on the formation of voting trusts is that the trust be formed for a proper
purpose, but the burden is normally on the attacking party to show that the purpose is improper.
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