Proxy ballots and the materials included with a ballot provide a key opportunity for investors. The ballots give shareholders a mechanism to express their rights as owners. The accompanying materials give details on how the company is run, including who the board members are, how executives are paid and whether conflicts of interest exist.
In this article
- What Is in the Proxy Package?
- What Will You Be Voting on?
- Who Can Vote for You?
- Electing the Board of Directors
- Ratifying the Accounting Firm
- Approving Executive Compensation
- Changes to Stock Composition
- More Information
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What Is in the Proxy Package?
Depending on the preferences you provided to your broker, you may receive notices about shareholder meetings either through a letter or package in the mail or an e-mail directing you to a Web site (an e-proxy). The contents will include a ballot, a notice of the meeting and the proxy statement.
The ballot will contain information about the shareholders’ meeting time and location. You can choose to appear at the meeting and vote in person. Alternatively, you can follow the instructions on the ballot to vote over the Web or by mailing the ballot in. If you decide not to attend the meeting, your ballot must be received by the company prior to the start of the meeting.
In addition, the notice will provide a brief overview of the proposals up for a vote and the board’s recommendations for those proposals. Each proposal should be considered based on its own merits. Furthermore, it may be in your best interest to vote against one or more of the board’s recommendations.
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