Proxy
A written authorisation by which a shareholder delegates voting rights at a shareholder meeting to another person or entity.
Full Definition
In the context of stock transfer and corporate governance, a proxy is both the document (the proxy card or form) granting authority to vote and the person designated to vote on the shareholder's behalf. Proxies are distributed by transfer agents or proxy agents prior to annual or special shareholder meetings and must comply with SEC Regulation 14A (for U.S. reporting companies). Editors should distinguish between the proxy card (the voting instrument) and the proxy statement (the disclosure document filed on Schedule 14A). 'Proxy' alone is ambiguous and should be qualified in context. The plural is 'proxies'.
Usage
Usage note: Distinguish 'proxy' (the vote authority or the person) from 'proxy statement' (the SEC-filed disclosure document, Schedule 14A). In formal documents, qualify the term: 'proxy card', 'proxy form', or 'proxy statement' as appropriate.
In Context
- "Shareholders who cannot attend the annual meeting in person are encouraged to submit their proxy by telephone, internet, or mail prior to the deadline." — Notice of annual meeting / proxy statement
- "The proxy must be signed exactly as the shareholder's name appears on the transfer agent's records to be considered valid." — Proxy voting instruction guide