Which statement about a voting agreement is correct?

• A. Oral agreement
• B. Written signed
• C. Must include performance
• D. Board approval

Answer: (B)

A voting agreement among shareholders is enforceable only if it is in writing and signed because it can control how shares are voted for a long period, effectively dealing with control of the company. Under the Statute of Frauds, agreements that govern the disposition or control of an interest in shares, or can last beyond a year, generally must be in writing and signed to be enforceable. An oral agreement would not satisfy this requirement, making it unenforceable in most cases. There is no requirement that such an agreement include a specific performance term, and board approval is a procedural step, not a condition for the contract’s validity.