Properly Handling Shareholder Proxy in Business

Properly Handling Shareholder Proxy in Business

 

Shareholder proxy can be an asset in the business world. Voting by shareholders is conducted at special meetings or annual meetings. This voting often dictates important matters that the business needs to handle. That means that it is important that the shareholders be able to vote so that the proper outcome occurs. However, it is possible that shareholders may be unable to attend those meetings. This means that there has to be an effective way for them to vote from afar. Voting by proxy allows for this to happen. Proxy voting can be a viable way to ensure that voting takes place whether the shareholders can be present or not. It simply has to be handled properly to ensure success.

Shareholder Proxy is Governed by the SEC

The SEC has regulated and began governing shareholder proxy. The goal of this is to ensure that businesses comply with a set of rules to maximize the benefit of proxy voting. The SEC wants to be certain that these rules are followed strictly and that voting is done accurately and fairly. It is important for businesses to familiarize themselves with the SEC rules so that they can hold a legal and appropriate vote, even if voting is done by proxy.

Shareholder Proxy Should Follow Company Guidelines

Each company will also have their own set guidelines for shareholder proxy. This can be specific deadlines, rules that must be adhered to and even what issues can be voted by proxy. When a business wants to offer voting by proxy to their shareholders it is important to understand and follow the guidelines that the company has set forth. Company guidelines should never conflict with SEC rules.

Shareholder Proxy Requires Substantial Information

When taking advantage of shareholder proxy it is important for the business to send the proper information to those shareholders. All proxy information should be delivered as soon as possible so that shareholders can easily meet the deadlines. Some information that is mandatory includes the proxy statement, the permission form and the proxy ballot. The statement will inform shareholders about the details of each issue being voted on, while the other forms need to be filled out accurately and returned by the deadline.

Shareholder proxy is the most effective way for businesses to ensure that all shareholders are able to vote on each issue. Since it is not feasible for all shareholders to make it to every meeting, there was a way created that still allowed for necessary voting. Taking advantage of proxy voting can be complicated, but it must be handled properly to ensure legality and success. Knowing the SEC rules, company guidelines and what information to send to shareholders is the best way to ensure that everything is done correctly from the very beginning.

Ensure that your shareholder proxy meets all of the rules and guidelines without stress. Trust the job to a professional that understands the ins and out. Visit Colonial Stock at colonialstock.com to set up the help your next shareholder proxy voting.

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