What Is a Proxy Holder?

Voting by proxy allows you to assign your vote to another party.

It is common for voting members of an organization to be absent from certain meetings. In such cases, they can assign their votes to another party who can legally vote on their behalf.

Procedure

In the case of corporate shareholder or stakeholder meetings, the voter is called the principal, and the other party is called the agent or the proxy holder. Proxy agreements must be in writing and signed by the principal at the very least. The proxy holder may be allowed to vote how she wishes, or be instructed how to vote by the principal.

Exceptions

Not all organizations permit proxy voting. Many non-profit bodies, for example, only allow in-person voting on matters such as budget approval or other financial matters.

Drawbacks

The proxy holder is bound by the principal and is liable for any subsequent errors, mistakes or illegal activities that arise.

References

• Duhaime.org: Proxy Definition