What is Proxy?
A proxy is an individual legally authorized to act on behalf of someone else. When shareholders are unable to attend an Annual General Meeting (AGM), they can designate proxies to cast votes on their behalf.
How Proxy Works
While Management prefers shareholders to vote in person, voting by proxy is always a choice. If a shareholder cannot attend, proxy voting becomes available. If someone acts as a proxy for an individual, specific documentation may be required to clarify the extent to which the proxy can represent the individual.
An official document from an attorney may be necessary to authorize such actions. The shareholder signs a power of attorney, granting official permission for the designated person to vote on their behalf at the annual meeting.
Proxy Statement
Before the annual shareholder meeting, both shareholders receive a package of information containing the Proxy Statement. These proxy documents contain essential details to help shareholders make informed decisions on matters relevant to the company's success.
The Proxy Statement offers insights to shareholders and potential investors about the company's governance and management activities. It includes crucial information about the agenda items for the annual meeting, lists the credentials of management and board members, and serves as a ballot for board of directors elections. Additionally, it provides specific details about executive compensation.
However, if a shareholder arrives late and wishes to vote personally, a proxy cannot cast the vote on their behalf. Shareholders have the option to cast a vote by mail, mobile, or internet when participating in remote proxy voting. The information in the proxy statements assists shareholders in their decision-making process.
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