A power of attorney contract is required if you want another person to act on your behalf in a corporate matter. This is a useful tool if you live far from where shareholder meetings take place, if you have other business to take care of, if you can`t physically get to the polling place, or if for some reason you just can`t be there. In company law, the power relates to the power to vote in shares. It is provided for in the Charter of Companies and the statutes of the company. If the power is not mentioned in the articles of association of the company, no power may be used. The owner of the shares whose name is registered with the company is the only one who can delegate his voting rights. If the shareholder has not bequeathed instructions to the agent, he must act as he pleases for the shareholder. The voting representative is not responsible for the measures taken against the shareholder as a result of the request for judgment. Fears can also be revoked if the shareholder himself participates in the meeting. A shareholder in one company may act as an agent for another shareholder, but is not a prerequisite. Parties concerned: Two parties are usually involved in the drafting of this agreement, the first being a person (representative) and the second the contracting authority. Action that requires prior consent – an agent cannot do certain things without the written permission of the shareholder. This includes the sale of assets belonging to the company, consolidation, reorganization or dissolution of the company.
Effective Date: This Agreement would indicate the start date of the Agreement and the Expiry Date of the Agreement, if any, a power of which may be withdrawn whenever the shareholder deems it correct, unless it is made irrevocable. If the shareholder decides to sell his shares in a company, he automatically removes all the voting rights holders. In many cases, the shareholder`s voting power may be granted to an agent. It is a simple agreement that allows one person to represent someone else. Anything that the voting representative does to the corporation without the written consent of the shareholder is considered invalid. The document would indicate the parties that are part of the agreement as well as the rights and obligations that the agent can assume on behalf of the person. The agreement may include certain arrangements of the agreement and the conditions under which the agent is appointed. The proxy agreement would also indicate a start date and an end date for proxy voting. The person or entity for whom the acting agent would define certain rights and obligations of the voting representative and a right to information.
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