What specific unlawful purposes are prohibited for entering into a voting trust agreement?
No voting trust agreement shall be entered into for the purposes of circumventing the laws against anti-competitive agreements, abuse of dominant position, or anti-competitive mergers and acquisitions (SEC. 58, Revised Corporation Code of the Philippines). Furthermore, voting trusts are prohibited if their purpose is to violate nationality and capital requirements mandated by law. They are also explicitly disallowed if their aim is the perpetuation of fraud within the corporation. All rights granted under a voting trust agreement automatically expire at the end of the agreed period unless expressly renewed by the parties.
30 October 2025
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