Proxy Legal Term Meaning
Proxy is also the abbreviation of a proxy statement, which is a written notice that must be sent by the company to shareholders by proxy prior to the vote, and information such as the subjects to be voted and the names of the directors standing for election to the board, contains votes on the transactions, etc. The proxy statement of a public company can be viewed by anyone on the SEC`s website under the name “DEF 14A.” (n. 1) a person who has the right to sit in his place at a meeting, in particular with the right to vote. 2) written authorization given to someone to act or vote in his place. A proxy is generally granted to cast the votes of a shareholder at a meeting of shareholders as well as members of the board of directors and convention delegates. Management ensures that interests are fully represented by often encouraging shareholders who are unable to attend the AGM to vote by proxy. Information presented at the annual meeting often influences the future direction of the company, which can have a direct impact on the value of a shareholder`s interest in the company. A proxy cannot vote if the shareholder is late and decides to vote for himself. The greatest modern meaning of proxies lies in their use in shareholder voting.
The Companies Act (2006) in the United Kingdom and state laws in the United States require shareholders of limited liability companies and limited liability companies to vote in person or by proxy. The separation of ownership from management shares in corporations, where ownership is largely held by the public, has made the proxy a powerful control weapon, as the majority of shareholders can rarely be gathered in person for meetings where directors are elected. Since annual meetings of shareholders are usually required by law, the management of these corporations may obtain proxies from all shareholders at the expense of the corporation, obtain the powers of a quorum and a majority, and vote by proxy for directors of their choice. In general, any power held by a shareholder at a meeting of the corporation may be delegated to a proxy. An ordinary representative may vote on the company`s regular transactions, such as amending the articles of association. However, the proxy is not allowed to vote on extraordinary corporate transactions, such as a merger, unless they have a special proxy to do so. If a proxy acts within the scope of his or her proxy in accordance with the principles of the power of attorney, the shareholder is bound as if he or she had acted personally. The following is an excerpt from the proxy materials for the 2016 Annual General Meeting of Corning Inc. PROXY. One person appointed in place of another to represent him. 2.
In canon law, a judicial overseer or a person appointed to administer the legal affairs of another man is called an agent. Ayl. Parerg. 3. The act by which a person is so appointed shall also be referred to as a representative. 4. Proxies are also annual payments from parish clergy to the bishop, etc., during visits. Tom. Dictionnaire de droit, h.t. Vide Rutherf.
Inst. 253; Hall Pr. 14. 5. The right to vote in the election of a company by proxy is not a general right and the party claiming it must prove a special power of attorney for this purpose. on Corp. 67-69; 1 Paige`s Ch. Rep. 590; 5 days Rep. 329; 5 Cowen, MP 426. These regulations have made it easier for shareholder groups to challenge management control, even though in widely used companies the costs are extremely high.
If a contest takes place, reasonable costs of appeals may be legally charged to the Company by successful or unsuccessful management groups or by successful dissenting shareholder groups. However, the cost of an unsuccessful splinter group falls on its backers. Uncertainty as to the outcome of these competitions is heightened by the fact that a proxy is generally revocable until a vote actually takes place at the meeting. If a shareholder grants more than one proxy, as is often the case, only the most recent proxy will count. A proxy is a person who represents a member at the general meeting of a company with a legal document that could prove his authority. In accordance with Delaware General Corporation Law (DGCL) Title 8, Chapter 1, Section 211, the Company shall take reasonable steps to ensure that the proxy has the same rights as the shareholder to attend, vote and hear the minutes of the meeting; It doesn`t matter if the meeting is held remotely or in person. Each proxy also has the same rights as a shareholder to express his or her approval or disapproval in writing without a meeting, in accordance with Title 8, Chapter 1, Section 212(b) of the DGCL. In corporate law, an agent has the power to exercise the voting rights attached to shares.
This power is usually provided for by a corporation`s charter and articles or by a law of the state. If no proxy is granted, a shareholder cannot vote by proxy. The holder of the share, whose name is entered in the register of companies, is the only person entitled to delegate the right to vote. In the absence of an express requirement, no special form is required for a power of attorney. However, this must be proven by a sufficient written power of attorney. A power of attorney is not invalid if minor errors or omissions occur in the document. A person who is represented or represented by another person to represent and act for the person, in particular at a meeting or public body. Also the document containing the appointment of this person. The word “power of attorney” is said to be contracted (n.a.) The one who is appointed by another or charged with voting for him. Members of the House of Lords In England, they have the privilege of voting by proxy.
1 Bl. comm. 168. A person appointed to administer the affairs of another Nau in ecclesiastical courts; a supervisor. Also an annual payment from the parish clergy to the bishop, during visits. Tomlins. Prior to the Annual General Meeting, all shareholders will receive an information package with the proxy circular. The proxy materials provide shareholders with the information necessary to conduct an informed vote on matters important to the Company`s performance. A proxy circular provides shareholders and potential investors with insight into the governance and management of a company. The proxy discloses important information about the items on the agenda of the Annual General Meeting, lists the qualifications of the Management Board and members of the Board of Directors, serves as a ballot for the election of the Board of Directors, lists the major shareholders of a company`s shares, and provides detailed information on executive compensation.
There are also proposals from management and shareholders. Power of attorney, a term that refers either to a person authorized to appear elsewhere or to the legal instrument by which the power of attorney is conferred. It is a contracted form of the Middle English word “procuracie”. Proxies are now primarily used for specific reconciliation purposes. A power of attorney can legally be general or special. A general power of attorney empowers the person to whom it is entrusted to exercise general discretion throughout the matter, while a special power of attorney limits the power to a particular proposal or decision. In English and American bankruptcy proceedings, creditors may vote through an agent, and any proxy, which may be general or special, is issued either by the official receiver or by the trustee. The Securities and Exchange Commission (SEC) requires companies to file their proxy statements pursuant to Schedule 14A. Companies submit a power of attorney on a DEF 14A form. An authorized representative is a person designated by another person to represent that person at a meeting or before a public body. It also refers to the written power of attorney that allows a person to act on behalf of another person. An agent is a proxy authorized by law to act on behalf of another party, or a format that allows an investor to vote without being physically present at the meeting.
Shareholders who do not attend a corporation`s general meeting may vote on their shares by proxy by asking another person to vote on their behalf, or they may vote by mail.