how does a proxy work 
while proxy voting is often an option management encourages shareholders to vote in person if the shareholder cannot attend voting by proxy is another option for a person to act as a proxy for an individual formal documentation may be required that outlines the extent to which the proxy can speak on the individual s behalf a formal power of attorney document may be required to provide the permissions to complete certain actions the shareholder signs a power of attorney and extends official authorization to the designated individual to vote on behalf of the stated shareholder at the annual meeting meetings are often held in the spring during proxy season a proxy cannot vote if the shareholder arrives late and decides to vote for their own self proxy statementsbefore the annual shareholder meeting all shareholders receive a packet of information containing the proxy statement the proxy documents provide shareholders with the information necessary to make informed votes on issues important to the company s performance a proxy statement offers shareholders and prospective investors insight into a company s governance and management operations the proxy discloses important information on agenda items for the annual meeting lists the qualifications of management and board members serves as a ballot for elections to the board of directors lists the largest shareholders of a company s stock and provides detailed information about executive compensation there are also proposals from management and shareholders 1proxy statements must be filed with regulatory authorities such as the securities and exchange commission sec in the united states on an annual basis before the company s annual meeting 2