Define: Proxy Statement

A proxy statement is a document filed by a company with the Securities and Exchange Commission (SEC) that provides shareholders with important information about matters to be voted on at a company’s annual meeting, such as the election of directors or approval of executive compensation.

A proxy statement is important because it allows shareholders to make informed decisions about voting on important matters that affect the company’s governance and management. It provides shareholders with information about the company’s directors, executive compensation, and other matters that may impact their investment.

Proxy statements are typically available on a company’s website under the “Investor Relations” or “Corporate Governance” section. Alternatively, you can request a copy from the company’s investor relations department or the SEC’s EDGAR database.

Yes, shareholders who are unable to attend the annual meeting can vote by proxy. The proxy statement includes instructions on how to vote by proxy, either by mail, phone, or online.

Yes, shareholders can appoint someone else, known as a proxy, to vote on their behalf. This can be done by completing and returning the proxy card included in the proxy statement.

Yes, shareholders can generally revoke their proxy vote at any time before it is exercised by submitting a new proxy or attending the annual meeting in person and voting.

A proxy statement typically includes information about the company’s directors, executive compensation, shareholder proposals, and other matters to be voted on at the annual meeting. It may also include financial statements and other relevant disclosures.

Proxy statements themselves are not legally binding, but the votes cast by shareholders based on the information provided in the proxy statement are legally binding.

Shareholders who meet certain eligibility requirements can propose resolutions to be included in a company’s proxy statement. These requirements are outlined in the company’s bylaws and SEC regulations.

If you have questions or concerns about a company’s proxy statement, you can contact the company’s investor relations department or seek advice from a legal or financial professional. Additionally, the SEC’s website provides resources and guidance on proxy statements and shareholder rights.