How Do You Use a Proxy Voting Service?


Quick Answer

Proxy voting services are used by corporations to manage voting decisions and record results reliably when dealing with sensitive issue such as board of directors elections. Other issues dealt with by proxy voting services include auditor ratification, company bylaw alterations and compensation ratification.

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Full Answer

The process of proxy voting begins when the proxy voting service receives the company's holdings, ballots and voting instructions. A live feed of the meeting is established, and after the votes are cast, the service tallies the votes. These votes are released to the custodian banks, while the dedicated proxy establishes research, vote recommendations and an analysis of the voting process. This information is combined with the custodian bank information to process the voting instructions and confirmations, which are then recorded and delivered to the company.

Companies prefer to use proxy voting services because of the standardized quality control process they offer. These services use key performance indicators to keep tabs on meetings, work flows and the delivery of research, and they offer daily audits of votes, as well as checks to ensure that votes are both cast and recorded with accuracy. Additionally, proxy voting services have thorough training programs to implement for each company and offer one point of contact who provides technical support to resolve any problems the company experiences with the software or the voting process.

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