The legal designation of another person, referred to as a “proxy,” to vote your shares of common or preferred equity stock if the stock holders is unable to attend the meeting in person. The person designated is commonly the chairperson of the meeting and will vote the shares in accordance with the holders wishers. Companies encourage shareholders to vote bypproxy if they are unable to come to the annual meeting or a special meeting if required. This gives decisions the greatest possible legitimacy and transparency.
In order to activate the designation, all that is needed is for the shareholder to sign a power of attorney and extend authorization to the designated individual to vote on behalf of the shareholder.
The written document describing the matters to be considered and voted on at the special meeting is called a proxy statement. This may include a selection of documents provide shareholders with the necessary information to make an informed vote on issues described. Because of the depth of the information, larger institutions may employ the services of approxy advisory service to assist in their voting decisions.
Proxy Example
In a hostile bid scenario, or proxy fight, the investor is asked to vote on matters such as the election of directors usually at a special meeting of the stockholders called for that specific reason.
The document used to designate a vote of your shares of Company common stock is called a “proxy card.” The board of directors has designates a person or persons with full power of substitution, as proxies for the special meeting.
In a Q & A session written in a DEFM14A filing by Fitbit (FIT) with the SEC, a proxy is described as
Q: What is approxy?
A: A proxy is your legal designation of another person, referred to as a “proxy,” to vote your shares of Fitbit Common Stock. The written document describing the matters to be considered and voted on at the virtual special meeting is called a “proxy statement.” The document used to designate a proxy to vote your shares of Fitbit Common Stock is called a “proxy card.”
