A proxy statement is a communication from a corporation to its stockholders before the annual meeting, to inform stockholders about significant events taking place at the meeting and to give them enough information so they can vote. The Securities and Exchange Commission (SEC) requires all corporations which sell stock to the general public to provide a proxy statement to stockholders.
A typical proxy statement includes information about:
- Issues to be voted on at the annual meeting, along with a proxy form which the stockholder can use to vote if he or she cannot attend the meeting.
- Positions on the Board of Directors to be voted on and background descriptions of director candidates.
- Compensation of directors and auditors.