Proxy Letter

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Proxy Letter Format

[Your Name]
[Your Address]
[City, State, Zip Code]
[Email Address]
[Phone Number]

[Date]

To Whom It May Concern,

Subject: Proxy Authorization Letter

I, [Your Full Name], with [ID/Passport Number: [Your ID/Passport Number]], residing at [Your Address], hereby appoint [Proxy’s Full Name], holding [ID/Passport Number: [Proxy’s ID/Passport Number]], and residing at [Proxy’s Address], to act on my behalf in [specific matters or actions].

This authorization is valid from [start date] until [end date] unless revoked by me in writing before the mentioned date.

Details of Authorization:

• Authorized Action: [Detailed description of what the proxy is allowed to do]
• Reason for Proxy: [Explanation of why you are appointing the proxy]
• Duration: [Validity period of the proxy authorization]

The proxy shall have full authority to sign all necessary documents, make decisions, and take appropriate actions as needed within the scope defined above. I understand that I am responsible for any actions taken by the proxy under this authorization.

Please feel free to contact me at [Your Contact Information] if any clarification is required.

Sincerely,

[Your Signature]
[Your Full Name]

Key Points to Consider:

• Specificity: Clearly define the scope and limits of authority.
• Validity Period: Specify the start and end date of authorization.
• Legal Requirements: Check if notarization is required based on your jurisdiction or the nature of the proxy.

What is a Proxy Letter?

A Proxy Letter is a formal document that grants someone else the authority to act on your behalf. It is often used in scenarios like business meetings, legal matters, voting procedures, and other important decision-making events. It serves as a written confirmation that the proxy is authorized to represent you, making decisions and taking actions in your absence. You can also see more on Authorization Letter.

Different Types of Proxies

When creating a proxy letter, you should set the parameters of a proxy’s authority. What actions will he be doing on your behalf? And how will he execute them? You can choose to give him unlimited or specific powers. Highly similar to a power of attorney, proxies can be categorized into two:

1. General Proxy

To simply explain: what you can do in the meeting, a proxy can do as well. When you execute a general proxy arrangement, you are allowing your proxy to vote on any matter discussed during the board meeting Agenda. Some associations highly discourage or ultimately ban the use of general proxies, since their by-laws expressly provide that certain issues may only be resolved through the votes of actual members.

2. Specific Proxy

Also called limited proxy. The proxy can only do those specific acts written in the proxy letter. In this arrangement, you will have to include a list of specific issues or matters your proxy can vote for during the minutes of the meeting. For example, the letter only authorizes the proxy to vote against membership increase. He may not vote on other matters aside from that.

3. Direct Proxy

A direct proxy utilizes a communication plan using devices such as telephone or email. You will directly talk to the proxy while giving ‘real-time’ instructions on how to vote. The proxy merely serves to communicate your decisions in the board meeting. You will get updates and the proxy will have fast responses. Unlike the other types of proxies, despite being absent in the meeting, you are still able to fully participate.

4. Quorum Proxy

Unlike the others, this type of proxy bears no authority or power. He is appointed and encouraged to join the board meeting for purposes of attendance sheet. When a quorum is not reached during meetings, they are usually adjourned and set for another day. A quorum proxy is hired to avoid this inconvenience.

Cardinal Rules When Issuing Proxy Letters

A proxy letter contains a binding agreement. Since it is an agreement, it must observe formalities to be binding and enforceable. It is a basic rule that the document must be in writing, it must contain the date, and the owner must sign it. The letter should contain the duration the proxy will last and its purpose. In the event, the owner or shareholder issues multiple proxies, the letter which was issued last will be the only one valid. In turn, the formerly issued proxies are implicitly canceled.

Revoking Proxies

A change in mind and heart is not unusual; it’s human nature. You can cancel a proxy arrangement and issue a new one. No law prohibits you from doing so.  There are several ways to revoke a proxy. One way is by notifying the corporation or association’s secretary. You can email your intention of canceling the proxy a day before the meeting and issue a new one reflecting your revised preference. Another way of revoking a proxy arrangement is by attending the meeting and voting yourself. This is an implied way of canceling the proxy. However, it is important that you will be the one to cast the vote, not the proxy otherwise the proxy is not revoked and the vote cast by him is valid.  Lastly, a formerly issued proxy can be superseded by a newly issued proxy letter. If previously you have appointed Mr. A as your proxy but later on issued another letter appointing Mr. B as the new proxy, the former proxy is deemed canceled. Hence, it is essential to include a date in your formal letter to determine which one is the most recent.

How to Write a Proxy Letter for a Board Meeting

Writing a proxy letter is easy. It is similar to every other business letter you have written. A simple proxy letter should only use a single page. Typically, a letter has a heading, date, address, salutations, body, and signature. A proxy letter has the same. The only difference is, a proxy contains an agreement that has legal repercussions on the owner. To guide you in writing one, take note of the steps provided below.

Step 1: Read the guidelines under the corporation’s by-laws

The first thing you should do is read your corporation’s by-laws and find out if proxy voting is allowed. Also, try and check for additional guidelines on how to draft the proxy letter. Some organizations have specific requirements such as the use of certain phrases or sections. Others make use of a proxy form that a member can fill out and send to the organization a few days before the commencement of the meeting. If the by-laws do not contain any mention of voting by proxy, confirm with the organization’s head or officers. You can also see more on Guarantee Letter.

Step 2: Write the date

A proxy letter is a formal document. Writing the date in the letter is critically important, this will help us verify the document or agreement should the need arise. It is standard practice when writing business letters to format the date by day/month/year. For example, “29 May 2020.” The date should be the day the letter should be sent or emailed.

Step 3: Indicate your name, address, and title

To serve as introductions, the first paragraph in a proxy letter should introduce your name, address, and your title in the company. Consider this example, “I, John Doe, of 123 Robertson Street and a member of ABC corporation owning 10, 000 shares of stock of said corporation…”

Step 4: Indicate the name of the proxy

The proxy is the person that will represent you and vote on your behalf in the meeting. Adding to the example above, consider writing “I, John Doe, of 123 Robertson Street and a member of ABC corporation owning 10, 000 shares of stock of said corporation officially appoint Mary Grace as my proxy.” You can also see more on Vacation Request Letter.

Step 5: State the purpose of the proxy

If the purpose of the arrangement is to have the proxy vote for you in a board meeting, specify the purpose of the meeting and its date. I suggest you write it like this, “I authorize my proxy to vote on my behalf at the board meeting for the election of new officers to be held on June 22, 2020.”

Step 6: Sign the proxy letter

Finally, write your full name at the bottom of the letter and include your signature above it. Signing a document signifies that you fully understand and agree to its content. Once you sign the letter, it becomes binding and legally enforceable unless you cancel or revoke the authority. You can also see more on Legal Letters.

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