Which statement about voting trusts is correct?

• A. The trustee votes the shares as directed by the beneficiaries.
• B. The trustee may vote without regard to beneficiary instructions.
• C. The voting rights expire after one year.
• D. The trust must be registered with the securities regulator.

Answer: (A)

In a voting trust, voting rights attached to the shares are placed with a trustee who votes on those shares according to the beneficiaries’ instructions. The trustee acts as an agent for the beneficiaries, implementing exactly how they want the votes cast. That’s why the statement that the trustee votes the shares as directed by the beneficiaries is correct. The trustee isn’t supposed to vote independently here; doing so would go against the purpose of entrusting the voting rights. Terms like expiry or regulatory registration depend on the specific trust agreement and jurisdiction, so they aren’t universal features.