Procedures for proxy begin by a member voter giving power of attorney to another individual or entity to cast a vote on the member voter's behalf, explains Dummies.com. This type of procedure often is set against fundamentals principles among voting groups that voting rights should not be transferable and that members have to be present in order to vote.Continue Reading
Essential parliamentary regulations and universal voting guidelines such as those established by "Robert's Rules" rely on a foundation that a group must meet a quorum to conduct a valid vote, explains Dummies.com. Intrinsically, quorum rules rely on the lack of validity of members not present. If such a vote, however, is within a corporation, then the laws and articles of incorporation take precedence.
Management of a public corporation has shareholders vote by proxy because they want ownership's interests fully represented even if the shareholders are not present at meetings, says Investopedia. Before the vote, the proxy informs the voter of crucial information regarding the vote, including issues to be discussed at a meeting, the qualifications of candidates up for positions in the board of directors and information about executive salaries. In the United States, proxy certification has to be renewed yearly by the Securities Exchange Commission for this type of proxy voting to be legal.Learn more about Investing