What is the general term limit for a voting trust agreement, and what is the exception?
A voting trust agreement may be created by one or more stockholders to confer upon a trustee the right to vote and other rights pertaining to the shares for a period not exceeding five (5) years at any time (SEC. 58, Revised Corporation Code of the Philippines). This term limit is designed to prevent permanent control structures outside of the normal corporate election process. An exception is made if the voting trust is specifically required as a condition in a loan agreement, in which case the trust may exceed five (5) years, but it must automatically expire upon full payment of the loan. The agreement must be in writing, notarized, and filed with both the corporation and the SEC to be effective and enforceable.
31 October 2025
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