What are proxies in a corporate context?

Proxies in a corporate context refer to the permission granted by stockholders to allow others to manage their interests, particularly in voting situations during shareholder meetings. When shareholders are unable to attend these meetings in person, they can authorize someone else, often the management or another appointed representative, to cast votes on their behalf. This arrangement ensures that even those who cannot physically be present can still have their voice heard on important corporate matters, such as electing the board of directors or approving major corporate actions.

This mechanism is essential for maintaining shareholder rights and facilitating participation in corporate governance, particularly in larger companies where individual shareholders may not have the means or opportunity to attend meetings directly. The other options provided do not accurately describe proxies: some refer to different aspects of corporate structure or governance rather than the specific act of delegation that proxies represent.