General Proxy: A Comprehensive Guide to Its Legal Definition and Function

Definition & Meaning

A general proxy is a legal authorization that allows a designated individual, known as the proxy holder, to represent a stockholder at a corporate meeting. This proxy holder can vote on behalf of the stockholder on any matter that arises during the meeting, as if the stockholder were present. This type of proxy is commonly used in corporate governance to facilitate decision-making when stockholders cannot attend meetings in person.

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Real-world examples

Here are a couple of examples of abatement:

Example 1: A stockholder who is traveling abroad may appoint a colleague as their general proxy to vote on important company decisions during a shareholder meeting.

Example 2: A retired stockholder may use a general proxy to ensure their interests are represented at annual meetings, allowing a trusted family member to vote on their behalf. (hypothetical example)

State-by-state differences

State Proxy Requirements
California Requires a written proxy statement to be filed with the corporation.
New York Allows electronic submission of proxy forms.
Texas Proxies must be signed and dated by the stockholder.

This is not a complete list. State laws vary and users should consult local rules for specific guidance.

Comparison with related terms

Term Definition
General Proxy Allows a proxy holder to vote on any matter at a corporate meeting.
Limited Proxy Restricts the proxy holder to vote only on specific issues.
Durable Proxy Remains effective even if the stockholder becomes incapacitated.

What to do if this term applies to you

If you need to appoint a general proxy, start by selecting a trusted individual who can represent your interests. You can use templates from US Legal Forms to create the necessary documentation. Ensure that you understand your corporation's bylaws regarding proxy appointments. If your situation is complex or if you have specific concerns, consider consulting a legal professional for tailored advice.

Quick facts

  • Typical fees: Varies by corporation; some may charge for processing proxies.
  • Jurisdiction: Governed by state corporate laws and the corporation's bylaws.
  • Possible penalties: Invalidating a proxy vote if not properly executed.

Key takeaways