Why a Proxy is Positive

by | Nov 11, 2016 | Financial Services

A proxy can be very helpful if you need it. If you are a shareholder in a company, that means that you help make very important decisions regarding the company. Most companies hold formal meetings to get a count of people’s votes to help make serious decisions. If you are unable to attend a meeting, you can use a shareholder proxy to cast your vote.

Ways to Vote Using a Proxy

The great thing about technology is that you can cast your vote online; which means your vote will be received instantaneously. If your company sends a brief through the mail about the upcoming meeting, they might also include a paper form of a proxy. If you have the paper proxy, you will want to fill it out as soon as you can and mail it. If you wait too long to mail it in, they might not receive it before the meeting. If any shareholder isn’t present and didn’t use a proxy, their vote will not be counted for either side.

Giving Smaller Shareholders a Say

When it comes to nominating new board members, typically larger shareholders have more of a say. By accessing a proxy, the shareholders that hold a smaller portion of the company can nominate other people. You can also separate information on a proxy to show who has voted, and start discussions. Proxies can help keep a company’s shareholders stay in contact, without having to hold large meetings. In the United States, many companies have a lot of shareholders. If a company starts using a proxy to nominate board members, they can separate the information based on who the company nominates from who the shareholders chose. Overall, using a proxy can be a great thing for a company. A proxy can make sure that everyone has a say and keep everyone in contact. Visit Colonial Stock Transfer Company, Inc.

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