Proxy voting allows shareholders to vote on important topics without attending the special meetings that are often required. One of the benefits of being a shareholder is the ability to vote on vital topics to the business. These can include such things as mergers, the election of directors to the board and even stock compensation plans. Shareholders have a large stake in what the final decision in those matters will be. However, it is not always feasible for the shareholder to attend these meetings. Fortunately they can vote by proxy and still have a say in the results. There are some tips that offer the best chance of success with voting by proxy.
Read the Proxy Statement When Proxy Voting
Whenever the option for proxy voting is possible, there will be a proxy statement mailed to the shareholders. This is an informational booklet that offers vast detail into the issues that are being voted on. Every shareholder should become familiar with the details of the key issues. This will allow them to make an informed decision about their vote and whether or not they plan to vote by proxy.
Fill Out Ballot Precisely When Proxy Voting
Proxy voting gives shareholders the opportunity to always remain involved, but it requires that they do things properly. A proxy ballot is sent to shareholders along with their statement so that they can easily cast their vote. This type of voting is regulated by the SEC and it is important that it is done correctly. This means that a shareholder should carefully read the ballot and ensure that it is filled out precisely before returning.
Return Permission Form When Proxy Voting
Because proxy voting is regulated by the SEC there are rules in place to ensure that it is done properly. That is why there is a permission form that is required to be returned by the deadline. Shareholders should be certain that they read over this form and understand what they are giving permission for. Then shareholders need to fill out the form and guarantee that it is sent with the ballot in time to arrive before the proxy deadline.
Success when voting by proxy is attained when the shareholder is certain of what they are voting on, knows their voting options and is certain to return the proper documents. The benefits of voting in this manner are that the shareholder can still have a say in very important matters without having to attend the meetings where voting occurs. Oftentimes shareholders are busy or located in another area and attending the meeting is simply not an option. This is why it is a common occurrence for shareholders to use proxy voting.
Your proxy voting needs to be handled with care to ensure that it meets the strict rules of the SEC. You can be sure that this will happen if you trust your proxy voting to a professional. Visit Colonial Stock at colonialstock.com to get started with your proxy voting needs.
