The agent represents the principle and his actions are carried out as acts of the client. However, in most proxy agreements, the client retains some form of control depending on the functioning of the agent and has the right to revoke the agent`s powers. 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. One of the cases in which the Tribunal finds that irrevocable powers are not enforceable is when the agent has a proprietary interest in the corporation. For example, the voting representative may have lent money to the company or be an existing employee. However, under a Delaware statute, an agent may be made irrevocable, regardless of whether the agent has a personal interest in the company or its shares. 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.
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. Subsequently, a dispute arose over the composition of the board of directors and the validity of an option to repurchase the shares held by the son. In response, the son revoked his father`s power of attorney. When the case was brought before a Delaware court, the court decided that the agent was enforceable and the father`s interest in the stability of his position as CEO appeared to be an interest in supporting irrevocability under Delaware`s statute. An irrevocable proxy voteProxy VoteEistrat Vote is a delegation of voting rights to a representative on behalf of the holder of the original vote. . . .