11:43
Personal stuff with my ex :/. I wanted to vent to strangers on the internet lol
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Simple English definitions for legal terms
proxy statement
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A quick definition of proxy statement:
A proxy statement is a document that a company gives to its shareholders before a meeting. It tells them what they will be voting on, like choosing new leaders or deciding on important business deals. The government makes sure companies follow rules when they make these statements.
A more thorough explanation:
A proxy statement is a document that public companies have to give to their shareholders before a shareholder meeting. The Securities and Exchange Commission (SEC) makes companies follow Schedule 14A when they file their proxy statement. Companies use a Form DEF 14A to file their proxy statements. Proxy statements explain proposals that shareholders will vote on, like electing new directors, deciding on executive compensation plans, and voting on important transactions.
Let's say you own some shares in a company. The company wants to make some big changes, like hiring new executives or merging with another company. Before they can do that, they have to get approval from their shareholders. They'll send you a proxy statement that explains what they want to do and asks for your vote. You can vote in person at the shareholder meeting or by filling out a proxy card and sending it back to the company.
Another example could be a company proposing a new policy that would affect the environment. The proxy statement would explain the policy and ask shareholders to vote on whether or not to approve it.
These examples show how a proxy statement is a way for companies to communicate with their shareholders and get their input on important decisions.