What is Proxy Voting?

Proxy voting is a type of voting whereby a shareholder delegates their voting power to a representative. The proxy votes on behalf of the principal, and the vote shall be counted as if the member himself is the one who casted the vote.

Whenever an organization needs to make decisions, a proxy ballot and a proxy statement are sent to eligible shareholders. The proxy statement contains information on the issues that should be voted on, annual reports, and a proxy card with voting instructions. Should they be unable to attend the meeting, the shareholder chooses a person to vote based on the shareholder’s directions written on the proxy card. Proxy votes should usually be cast 24 hours before the meeting, and they may be cast through phone, mail, or online methods.