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Corporations • Rights of Shareholders
CORP#043
Legal Definition
Voting by proxy requires (1) a writing (2) signed by the record shareholder, (3) sent to the secretary of the corporation (4) authorizing another to vote the share, and (5) is valid for only 11 months.
Plain English Explanation
Owning a share of a company is a powerful thing. If you own a share of a corporation, then you have the right to participate in a shareholder meeting and vote on the corporation's activities. But what if you are incredibly lazy, or super busy, and can't personally attend the shareholder meeting in order to cast your vote? Have no fear, proxies are here!
A proxy is a person who is empowered with the ability to vote on behalf of a shareholder. How do they get this power? The shareholder must submit a written and signed permission slip to the secretary of the corporation that provides the proxy with authorization to vote on the shareholder's behalf. These permission slips only last for a maximum of 11 months.
A proxy is a person who is empowered with the ability to vote on behalf of a shareholder. How do they get this power? The shareholder must submit a written and signed permission slip to the secretary of the corporation that provides the proxy with authorization to vote on the shareholder's behalf. These permission slips only last for a maximum of 11 months.
Related Concepts
Are shareholder proxies revocable?
How is an action approved at a shareholder meeting?
In regards to shareholder suits, what are derivative action?
In regards to shareholder suits, what are direct actions?
In what form may dividends be paid?
What are the liabilities of shareholders and controlling shareholders?
What are the minimum meeting requirements for a corporation?
What are the requirements for a shareholder to examine books and records?
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What are the three most common forms of distributions?
What are the traditional limitations on distributions?
What are the ways in which a corporation may restrict the transfer of shares?
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What is the difference between traditional voting and cumulative voting?
What is the priority of distribution for dividends?
What is the procedure for a shareholder to bring a derivative action?
When and how may shareholders eliminate corporate formalities?
When can or can't a board of directors declare a distribution?
Who has the right to vote at a shareholder meeting?
