What is the purpose of proxy voting for shareholders?

The purpose of proxy voting for shareholders primarily revolves around enabling them to vote on corporate matters without the need to be physically present at meetings. This process is crucial because it ensures that shareholders who may be unable to attend due to geographic, scheduling, or other constraints still have the opportunity to participate in important decisions regarding the company, such as electing directors, approving mergers, or ratifying auditors.

Proxy voting allows shareholders to delegate their voting power to another individual, typically a proxy, who can cast votes on their behalf. This mechanism enhances shareholder engagement and encourages broader participation in corporate governance, ensuring that a larger pool of shareholders can express their preferences and influence corporate outcomes.

While attending meetings remotely or influencing management decisions are important aspects of shareholder engagement, proxy voting specifically addresses the ability to participate in decisions without physical presence.