Hi
I heard about the meeting that held on July 2011 and the proxy statement. I can’t understand what proxy statement and the purpose of the meeting. Need help.
Thank you.
What is proxy statement and purpose of meeting of proxy July 2011?
Hello Kevin Moiles,
A proxy statement is a communication from a corporation to its stockholders before the annual meeting to inform stockholders about significant events taking place at the meeting and to give them enough information so they can vote. It is a statement required of a firm when soliciting shareholder votes.
The SEC (Security Exchange Act) requires that shareholders of a company whose securities are registered under section 12 of the SEC act of 1934 receive a proxy statement prior to a shareholder meeting, whether an annual or special meeting.
I hope you understand.
Thanks.
What is proxy statement and purpose of meeting of proxy July 2011?
A proxy statement is the statement needed by a firm for the purpose of requesting votes from the shareholders. It is filed in advance to the annual meeting. The proxy statement needs to be filed by the firm or else they will be filing from the U.S. Securities and Exchange Commission using the Definitive Proxy Statement or Form DEF 14A.
This statement helps in evaluating possible conflict of interest problems with auditors and also how the management is compensated. The proxy statement has the following information:
-
The procedure and voting information.
-
The nominated directors’ background information which include information like significant history in the industry or company, possible conflicts in interest, and their positions on other corporate boards.
-
Salary from the board.
-
The person in-charge on the audit committee including a breakdown of the audit and non-audit fees that needs to be paid to the auditor.
There is an argument on the “proxy access” which is the means to permit shareholders to elect candidates which can be seen in the proxy statement.
