A proxy is an agent legally authorized to act on behalf of another party or a format that allows an investor to vote without being physically present at the meeting .
It also refers to the written authorization allowing one person to act on behalf of another.
When, Shareholders not attending a company's annual general meeting (AGM) may vote their shares by proxy by allowing someone else to cast votes on their behalf, or they may vote by mail.
How Does a Proxy Work?
For a person to act as a proxy for an individual, formal documentation may be required that outlines the extent to which the proxy can speak on the individual's behalf. A formal power of attorney document may be required to provide the permissions to complete certain actions. The shareholder signs a power of attorney and extends official authorization to the designated individual to vote on behalf of the stated shareholder at the annual meeting.