Overview
A Proxy Agreement is a legal document that appoints a representative, or 'proxy', to make decisions on behalf of another person or entity.
Full Details
What is a Proxy Agreement?
A Proxy Agreement is a legal document that appoints a representative, or 'proxy', to make decisions on behalf of another person or entity. It is commonly used in business settings, particularly in corporate governance, to allow shareholders who cannot attend company meetings to vote on corporate matters.
What are the benefits of creating a Proxy Agreement?
- Participation in Decision-making: A Proxy Agreement enables shareholders who cannot attend meetings to still have their votes counted, thus participating in important company decisions.
- Efficiency: It can streamline decision-making processes, particularly in large corporations with many shareholders, by reducing the number of individuals directly involved in votes.
- Quorum Requirements: In many corporations, a certain number of shares must be represented at a meeting for it to be valid ('quorum'). Proxies can help ensure these quorum requirements are met.
- Protection of Interests: By appointing a trusted representative, shareholders can ensure their interests are protected and their votes are cast in line with their preferences.
Solution