A. Only a qualified person may be appointed a proxy to vote any voting shares of a professional corporation.

Terms Used In Arizona Laws 10-2231

  • Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
  • Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
  • Person: includes an individual and entity. See Arizona Laws 10-140
  • Qualified person: means a person that is eligible under this chapter to be issued shares by a professional corporation. See Arizona Laws 10-2201
  • Shares: means the units into which the proprietary interests in a corporation are divided. See Arizona Laws 10-140
  • Trustee: A person or institution holding and administering property in trust.
  • trustees: means individuals, designated in the articles of incorporation or bylaws or elected by the incorporators, and their successors and individuals elected or appointed by any other name or title to act as members of the board. See Arizona Laws 10-3140
  • Vote: includes authorization by written ballot and written consent. See Arizona Laws 10-3140
  • Voting shares: means shares entitled to vote for election of directors of the professional corporation. See Arizona Laws 10-2201

B. A voting trust with respect to voting shares of a professional corporation is not valid unless all of its trustees and beneficiaries are qualified persons. If a trustee or beneficiary who is a qualified person dies or dissolves and the person to whom the trusteeship or beneficial interest is to devolve is not a person to whom section 10-2222 would permit the shares held by the trust to be transferred or a trustee or beneficiary becomes disqualified, a voting trust valid under this subsection continues to be valid for ten months after the date of death or for five months after the disqualification occurred.