What is a proxy statement?
This refers to a document that a public-listed company must provide to its shareholders ahead of an annual or general meeting. It gives investors information relevant to the agenda at the meeting, often ahead of voting for board members.
Where have you heard about a proxy statement?
It is a term used mainly in the US, as companies are required by the country's Securities and Exchange Commission (SEC) to provide this document to investors ahead of such a meeting.
What you need to know about a proxy statement.
One of the main items on the agenda at a shareholder meeting may be electing candidates to the company's board of directors. Therefore a proxy statement would provide detailed information about each nominated candidate, including their background and salary in recent years. Details of bonuses and other executive perks must also be disclosed. A proxy statement can help current shareholders and also aid potential future investors who may be considering buying assets in a company.
Find out more about a proxy statement.
The Securities and Exchange Commission requires public-listed companies to submit proxy statements.