A proxy can be defined as being somewhere or using authority on behalf of someone else. For example, you don’t want to attend a meeting and send another person as proxy who will speak in the meeting on your behalf and the other participants will consider him as you.
Introduction to the Proxy to Vote Corporate Shares:
When a shareholder finds out about an upcoming meeting, which is important for his role in the company but he feels that he won’t be able to attend the meeting so he sends someone else to the meeting to speak on his behalf. That person will be known as the proxy. Here we are talking about the same proxy but it’s done in documented form. A shareholder who can’t make to a meeting, can send a letter to the board of directors stating his decision or vote for the decisions that will be discussed in the meeting i.e. election for new members for the board of directors, starting a new project or selling of the company assets.
Brief Description of the Proxy to Vote Corporate Shares:
Shareholders and stockholders are considered as the real owners of a company and that’s why the partners of a company and the members of board of directors find it really important that whenever there is an important issue to discuss, a meeting is called in which all the partners, members of board of directors and shareholders are invited so that they can listen to the problems, understand the solutions and vote for their recommendations on the choices and decisions. Usually when there is an important meeting, the shareholders receive a formal letter of invitation to the meeting along with particulars of the meeting i.e. date, time and location. Along with these particulars, another important thing is included in the invitation which is the agenda of the meeting.
With the agenda, the shareholders can understand what the purpose of the meeting is and what type of decisions will be made in the meeting. This gives them enough time to think and decide how they will vote and what type of decision they will support. If a shareholder wants to speak in favor or against a decision, he has to speak in the meeting and share his thoughts with the rest of the participants and this can be done either by attending the meeting or sending proxy letter to vote. If a shareholder finds out that he can’t make to a meeting, he will decide how he wants to vote on the agendas that will be discussed in the meeting and send a vote letter to the board of directors in order to participate in the decision making process.
Key Elements to include in the Proxy to Vote Corporate Shares:
- Name of the shareholder along with complete address
- Designation or position of the shareholder in the company (if applicable)
- Reference to the meeting that will be held in near future
- Reference to the agendas or decisions of the meeting
- Clear vote of the shareholder in favor or against each agenda
- Names of the members of board of directors who the shareholder is addressing in the letter
- Date when the letter is sent to the board of directors
- Signature of the shareholder
Here is preview of a Free Sample Proxy to Vote Corporate Shares Notice created as fill-able PDF,
Here is download link for this Proxy to Vote Corporate Shares Notice,