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A proxy statement is a document filed by public-traded companies before annual or special shareholder meetings to give shareholders the necessary information to make informed votes on board business.
1 By law, publicly traded companies must host an annual shareholder meeting once a year. The Securities and Exchange Commission (SEC) requires that these companies also send proxy statements to shareholders ahead of their annual meetings.
A proxy statement generally includes the names and short biographies of individuals on a company's board of directors, including those who are running for reelection and new candidates chosen by the board's nominating committee.
Issues covered in a proxy statement can include proposals for new additions to the board of directors, information on directors' salaries, information on bonus and options plans for directors, corporate actions like proposed mergers or acquisitions, dividend payouts, and any other declarations made by the company's ...
Proxy statements: The proxy statement is created and distributed by the corporation and includes everything a shareholder would need to make an informed decision. Proxy statements are typically sent online and recorded in the SEC database.