Once a year, each
publicly owned company
holds an annual meeting for shareholders. At this meeting, shareholders can vote for directors and on other issues, as well as pose questions to directors and management. In the early days of public stock ownership, shareholders would physically meet and vote from the floor. But because most shareholders can't attend the annual meeting, they now vote mostly by
proxy.
When you vote by proxy, you fill out a paper ballot, use an online voting system, or call a designated telephone number to cast your vote. About four to six weeks before the meeting, the company sends out a document that describes the issues and nominees on the ballot and includes management's position on various ballot items. You must respond by a particular date or you give up your right to vote.
The board is in charge of counting the votes. If you sign your proxy but don't vote on one or more of the ballot issues, the board may count your vote as siding with management's recommendation.
