A person or usually a partner/shareholder in a company who doesn’t want to attend all the meetings or use his ownership rights by himself when needed, nominates another person or mostly another partner in the same company to vote on his behalf as his proxy. This is known as voting by proxy and the partners and directors who handle responsibilities of more than one corporations use the proxy voting as they can’t attend every meeting or can’t participate in every decision by themselves. The proxy that can be cancelled by the giver or other partners in a dispute or problem is known as revocable proxy.
Brief Description of the Revocable Proxy:
When we talk about proxies, there are usually two types including; irrevocable and revocable proxy. The irrevocable proxy is the proxy that stands legit and legal even if other partners don’t agree with it or want to cancel or. This is the proxy that will be operational even if the proxy giver dies or disables. There is no expiration date or validation on the irrevocable proxy and it can only be revoked if the proxy giver wants to revoke it. On the other hand, a revocable proxy is much preferable by the corporations and shareholders in the company.
Basically it’s the same as irrevocable proxy but the difference is that if other partners want, they can revoke it by majority voting and the proxy is automatically revoked if the proxy giver dies. It depends on each contract and proxy agreement but when this proxy is revoked by the death of a person, the vote decision can’t be changed if the proxy person has already cast the vote or spoke in favor or against a decision before the proxy was revoked. This means that even if a partner realizes that his proxy has casted wrong vote and dies before taking any steps, the vote can’t be changed even after his death or after the proxy is revoked.
Key Elements to include in the Revocable Proxy:
- Name of the company with trademark and registration number and complete address
- Name of the person or shareholder or director in the company who is presenting himself by proxy
- Name of the person or partner or director who is designated for the revocable proxy
- Details of the authority of the designated proxy person
- Sworn statement of the proxy giver saying that he in fact is giving authority to another person for the revocable proxy
- The statement of considering the nominated person as the true director or shareholder signed by the actual owner of the rights
- Signature of the person who is giving proxy to another person
- Date when this document is being signed
- Validation and termination of the proxy (i.e. violation of the proxy agreement by the nominated person)
- Terms and conditions on which other directors or partners can revoke the proxy
- Terms and conditions on which the proxy will be automatically revoked (i.e. death of the person, disability of the person etc)
Here is preview of a Free Sample Revocable Proxy Certificate created as fillable PDF format,
Here is download link for this Revocable Proxy Certificate,