People are very busy out in the business world and sometimes that means that they have to miss very important meetings that could be making crucial decisions. This happens quite a bit in the case of shareholders because many of them don’t live close to the company or the meeting place. Because of this reason, a shareholder proxy was created. This proxy gives up the vote at meetings of the original shareholder and allows another shareholder at the meeting to cast their vote for them. With this proxy in place, people feel as if everyone got their voice in whether they were thousands of miles away or in the meeting room.
Pros of Shareholder Proxies
There are many benefits of a shareholder proxy as mentioned above. The shareholder that is not present in the meeting is still represented through their vote made by another shareholder. Not only that, but when the proxy is made up and signed, it lists the topics that the shareholder would have heard about in the meeting so that they are not missing out on any important, new information. The proxy ballot is sent in the mail and is very easy to fill out and return. This is great for those shareholders who are too busy to make it and may even be too busy to fill out any long, detailed forms about the topics at hand.
Types of Shareholder Proxies
There are different types of proxies that differ greatly from the common one. A duplicate proxy is one that gives the shareholder the chance to revote and change their decision. This is because many shareholders will think about the information they were given later on and decide that the other decision best suited their beliefs. Another type of proxy is called a proxy fight. A proxy fight is when multiple shareholders join together and convince others to choose the proxy that they want so that it takes over the corporate vote. Visit Colonial Stock Transfer Company, Inc.