Proxy Definition and Legal Meaning
On this page, you'll find the legal definition and meaning of Proxy, written in plain English, along with examples of how it is used.
What is Proxy?
a person or a written authority which authorizes a person to act as an agent or a subsitute of another person somewhere. Usually it also gives the power to cast a vote as well.
History and Meaning of Proxy
The term "proxy" originated from the Latin word "procuratio" which means to manage affairs on behalf of someone else. Proxy refers to a person or a written authority that allows another person or entity to act as a representative or substitute of the original person or entity. It is used in various fields, including corporate law, elections, and finance.
In corporate law, shareholders often give proxy to another person or entity to vote on their behalf during shareholder meetings. In the context of finance, a person may give proxy to an investment advisor to make investment decisions on their behalf. The use of proxy allows for more efficient decision-making by delegating authority to trusted individuals or entities.
Examples of Proxy
- During a shareholder meeting, a shareholder who cannot attend may give proxy to another shareholder, allowing them to vote on their behalf.
- A student who cannot attend a class may give proxy to a classmate, allowing them to take notes and turn in assignments.
- A person who lives too far from a voting booth may vote by proxy, giving someone they trust the ability to vote on their behalf.
Legal Terms Similar to Proxy
- Power of Attorney: Legal authority given to a person to act on behalf of another person or entity.
- Trustee: A person or entity who holds property in trust for another person or entity.
- Fiduciary: A person or entity who has a legal or ethical duty to act in the best interest of another person or entity.