A shareholder proxy is a form used to assign voting rights when a shareholder is unable to attend a meeting. The form should include the company name, effective dates, proxy name, and nomination of the proxy. It must be signed in front of a witness and notarized. If the company does not provide a form, shareholders can create their own and follow state regulations. A copy should be sent to the company and given to the proxy.
A shareholder proxy is a form that a shareholder signs to assign their voting rights for a meeting of shareholders when the shareholder is unable to attend. Typically, the company or corporation holding the meeting creates and provides the form for the shareholder to complete. You can create your form on a blank sheet of paper or company letterhead to mail to shareholders.
Start by typing the title on the document, which might read something like “Shareholder Proxy” or “Shareholder General Proxy.” After the title, type the information in a block format. The information includes the name of the company hosting the shareholders’ meeting, effective dates of the shareholders’ meeting and the name of the person who is your proxy. For example, the first line is the effective date, followed by the end of the proxy, the company name, the shareholder name (you), and the name of the person you’re proxying.
The next paragraph of a shareholder proxy is written in a paragraph format and is the nomination of the proxy. This is the section of the proxy form that transfers your voting power to the representative acting like you at the shareholders’ meeting. For example, the paragraph may begin with “As a shareholder of XYZ Corporation, I hereby establish the above as my proxy from the effective date to the date of termination set forth above.”
The shareholder must sign the proxy in front of a witness, who can authenticate the form. The form must also be dated. Finally, the notary will complete the bottom section of the shareholder proxy with information including state and county, witness statement, their signature, and stamped with their notarized stamp.
If the company does not send a shareholder proxy form with the meeting announcement, you can type in your shareholder agreement. You should contact the company to determine the specific requirements needed to transfer voting rights to your proxy. The company and the state in which the company operates may have rules and regulations that must be followed in order for delegation to be legal.
Once the shareholder proxy is created, you need to have a copy to send to the company. You should also provide your proxy with a copy to take to the shareholders’ meeting. This ensures that they are able to represent you, vote for you and act like you in your absence.
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