SIFMA Proxy Voting Resource Center: What is Proxy Voting?

The proxy process is a term used to describe the means for shareholders to participate in a company's annual shareholder meeting. Companies want to hear from their shareholders. In fact, they need a certain amount of retail investors' votes in order to reach a quorum and hold a meeting to consider important governance proposals. A typical shareholder meeting requires that at least half of the outstanding shareholders participate in the voting process. If you own shares in a corporation, you are a part-owner of that corporation. You have the right to vote for members of the Board of Directors who will represent you as well as voice your opinion about many important decisions the company's management will make -- you do that through casting a proxy vote.