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How to distinguish proxy from voting trust
Essentials of Business Law and Labor Law is a digital initiative of Alburo Law to provide legal knowledge to entrepreneurs to help improve their productivity and profitability by ensuring that businesses comply with relevant laws, rules, and regulations.
How to distinguish proxy from voting trust
The law says -
Section 57. Manner of Voting; Proxies. - Stockholders and members may vote in person or proxy in all meetings of stockholders or members
When so authorized in the bylaws or by a majority of the board of directors, the stockholders or members of corporations may also vote through remote communication or in absentia: Provided, That the votes are received before the corporation finishes the tally of votes.
A stockholder or member who participates through remote communication or in absentia shall be deemed present for purposes of quorum.
The corporation shall establish the appropriate requirements and procedures for voting through remote communication and in absentia, taking into account the company's scale, number of shareholders or members, structure and other factors consistent with the basic right of corporate suffrage.
Proxies shall be in writing, signed and filed, by the stockholder or member, in any form authorized in the bylaws and received by the corporate secretary within a reasonable time before the scheduled meeting. Unless otherwise provided in the proxy form, it shall be valid only for the meeting for which it is intended. No proxy shall be valid and effective for a period longer than five (5) years at any one time.