Document background
The Proxy Shareholder Agreement is a crucial document used when shareholders wish to delegate their voting rights to a representative for corporate general meetings and other shareholder decisions. This arrangement is particularly common in German corporate practice, where proxy voting is regulated under the Stock Corporation Act (Aktiengesetz). The document becomes essential when shareholders cannot attend meetings personally, need professional representation, or want to consolidate voting power. The agreement specifies the exact scope of the proxy's authority, voting procedures, and compliance requirements under German law. It's particularly relevant for listed companies, institutional investors, and companies with diverse shareholder bases, ensuring proper corporate governance while maintaining shareholder interests. The Proxy Shareholder Agreement must address specific German legal requirements regarding form, content, and authorization procedures.
