Free Shareholder Proxy Agreement

A Shareholder Proxy Agreement is a legally binding document that allows a shareholder to assign a person as a proxy to act on their behalf at a formal corporate meeting.

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A shareholder can be a person or another legal entity and possesses certain privileges and responsibilities. One of them is voting concerning the direction of the corporation.

Apart from the annual shareholder meetings, there are several other occasions where the shareholders' presence is needed along with their voting rights. However, shareholders don't have to be present all the time and can appoint a proxy. The proxy stands in for a shareholder in the meeting and acts in their best interests.

What is a Shareholder Proxy Agreement?

To create a Shareholder Proxy Agreement, it's often necessary to check the company's bylaws and ensure it's allowed in the first place. If it is, what are the specific guidelines? The Shareholder Proxy Agreement itself is a legally binding document transferring the shareholder's voting rights to the chosen proxy.

In most cases, the agreement is valid for one voting cycle. However, if you want to extend the proxy's voting power, it should be specified in the agreement.

Other Names for Shareholder Proxy Agreement

Depending on your state, a Shareholder Proxy Agreement may also be known as:

  • Proxy Agreement

  • Proxy Contract

  • Proxy Vote Form

  • Limited Proxy Form

  • Shareholder Proxy Form

  • Shareholder Agreement

Who Needs a Shareholder Proxy Agreement

Shareholders have a say in where a company is headed. They can use a Shareholder Proxy Agreement to save time and trouble getting to a shareholders' meeting. This is standard practice with most corporations, especially those with many shareholders from around the world.

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How to Create a Shareholder Proxy Agreement with 360 Legal Forms

The Shareholder Proxy Agreement doesn't have to contain too much information, just enough to meet all requirements. Any mistakes might result in the document getting challenged.

Let 360 Legal Forms help with our extensive library of attorney-vetted legal forms. The process is fast and easy. All you have to do is fill out our easy-to-understand questionnaire. Once complete, simply download your form as a PDF or Word document from your secure online account.

What Information Will I Need to Create My Shareholder Proxy Agreement?

To create your document, please provide:

  • Corporation details: Full legal name and address of the corporation.

  • Effective date: The date when the agreement is to be created.

  • Meeting details: The time and place of the meeting and the type of meeting.

  • Shareholder details: The legal name and address of the shareholder.

  • Proxy voter details: The legal name and address of the proxy.

  • Information on shares: Number and type of shares belonging to the shareholder.

  • Voting instructions: Detailed explanation of how the proxy should vote in the meeting.

  • Signature: Shareholders must sign the Proxy Agreement.

Shareholder Proxy Agreement Terms

  • Share: A single indivisible unit of capital or equity ownership

  • Shareholder: A person or entity owning shares in a company

  • Proxy: An assigned representative with voting rights

  • Board of Directors: A group of people appointed to represent the interests of the shareholders of a company

  • Bylaws: An internal set of rules that management uses for corporate governance

  • Meeting Minutes: A written record of everything happening in a corporate meeting

  • Shareholders' Resolution: An official decision made by the shareholders of a corporation as documented and filed with the corresponding meeting minutes

  • Status Quo: Relates to a tied vote held during a shareholders' meeting

Shareholder Proxy Agreement Signing Requirements

For the Shareholder Proxy Agreement to be legally enforceable, it requires the shareholder's signature. The proxy must be at least 18 years of age and not be an employee of the company. The proxy may also be required to be a shareholder of the company, though not necessarily. Once signed, the document usually doesn't require notarization unless otherwise stated by the company's bylaws.

What to Do with Your Shareholder Proxy Agreement

After the shareholder signs it, the agreement becomes legally binding. It's recommended for both the shareholder and the proxy to keep a hard copy of the agreement. Also, the company should have a copy of the agreement for safe-keeping in the records.

Frequently Asked Questions

A cumulative or accumulative voting system is used in a corporation to preserve the interests of the minority shareholders. In cumulative voting, the vote per share of a shareholder may be multiplied by the number of directors. This is as opposed to straight voting that offers a single vote per share. Most corporations in the United States use the straight voting model, but not all.

A pooling agreement is a type of voting wherein the shareholders can combine their voting rights into a single voting unit. It is used to create a voting trust for which a trustee is appointed and entrusted with the voting rights. This type of agreement is used to manage corporate affairs for the better, or at least that’s the intention.

It is what you would use to amend an existing agreement rather than having to create an entirely new document. An agreement can have more than one amendment. However, if it involves more substantive changes, it’s always best to create a new agreement.

The answer is no. If you have multiple shares, you cannot split up the voting rights for granting to multiple proxies. If a shareholder is to appear at a shareholders’ meeting and vote in person, any proxy agreement will automatically become invalid.

Unless specified as irrevocable, a proxy agreement is by default revocable. It can be revoked by creating a new proxy agreement, for one. Or you could create a separate revocation that relieves the proxy.

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