Meaning of Proxy
In a general sense, a proxy means a person or a representative who is nominated for performing one’s duty in his absence. It is a written authorization given by a shareholder for someone else, usually the company’s management, to cast his/her vote at a shareholder meeting or at another time. However, with regard to the company meeting a proxy may be defined as a person authorized to act and vote for another at a meeting. Such authorization is given in proxy form supplied by the company. A proxy is an agent legally authorized to act on behalf of another party or a format that allows an investor to vote without being physically present at the meeting.
Shareholders are entitled to attend and vote in the meetings arranged for them. They are also entitled to appoint a proxy. The person appointed as the proxy may or may not be an existing member of the company concerned. The job of a proxy is only to attend and vote in the meeting on behalf of the appointee.