We can alter that influence for the better by being an active participant in shareholder discussions. If you own shares in a corporation, you are a part-owner of that corporation. You have the right to vote for members of the Board of Directors who will represent you as well as voice your opinion about many important decisions the company’s management will make – you do that through casting a proxy vote.
The proxy process is a term used to describe the means for shareholders to participate in a company’s annual shareholder meeting. Shareholders may vote in person by attending the shareholder meeting, or, shareholders may vote by proxy online, by mail or by telephone.
Companies want to hear from their shareholders. In fact, they need a certain amount of retail investors’ votes in order to reach a quorum and hold a meeting to consider important governance proposals. A typical shareholder meeting requires that at least half of the outstanding shareholders participate in the voting process.
A proxy can also refer to the authority permitting another individual, for example your broker or financial adviser, to vote on a shareholder’s behalf.