Shareholder Proxy forms are necessary because they facilitate proxy voting. More specifically, they’re important and beneficial for the following reasons:
1. Accessibility
Shareholder Proxy forms make voting accessible for all shareholders. This is particularly important for large companies or organizations where it may be difficult for all shareholders to attend meetings in person.
2. Representation
Shareholder Proxy forms ensure that all shareholders have a voice and are represented in corporate decision-making regardless of whether they can attend in-person meetings. In other words, proxy voting can increase participation.
3. Efficiency
Proxy voting can help to reduce the time and resources required to conduct meetings. Depending on a corporation’s size, in-person shareholder meetings can come with logistical challenges, such as scheduling a large enough venue and providing adequate seating. Proxy voting can increase efficiency and reduce these challenges.