What Is A Proxy Solicitation And Why It's Necessary For Business Relations?

By Author: adryana bygger
Total Articles: 9
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Sodali is one of the most important consultancy serving corporations in continental Europe and the Middle East, Latin America, Asia and other developing markets. Sodali provides expertise and services relating to shareholder transactions, corporate governance, board assessment and relations with institutional investors. The team at Sodali has worked on over 400 assignments around the globe to help manager to understand how their company policy is perceived by the investor and when mergers, demergers, acquisitions, defences, disposals and other corporate actions bring to maximization of investor.

The main goal is to prevent problems between client companies and theirs institutional investors and define strategies to deal with shareholder. Sodali works through a network of local experts in countries around the world, especially in the major cities, like New York, Milan, Rome, Athens, Madrid and London. Since its clients come from every part of the world, Sodali needs to provide advices and services based on the specific rules of the different nations, recognizing the importance of local business practices and legal requirements ...
... while seeking to help companies deal with global expectations.

Among the various services offered, proxy solicitation is one of the most popular. Proxy solicitation can be defined as an attempt by a group to obtain the authorization of other members to vote on their behalf in an organizational ballot. More particularly in business affairs, it is the attempt by a stockholder group to influence other stockholders to vote a certain way on specific matters of corporate governance. A proxy solicitation attempt frequently also requires a proxy statement, a document to be included to provide material facts concerning the matters on which voting will take place.

A proxy solicitation is a typical action for corporate governance in the U.S., particularly for larger stock companies. Large corporations, often, make use of a proxy solicitation in advance of an important meeting to influence stockholders group's vote. When shareholders, infact, decide to present a position in opposition to the corporate management, a proxy solicitation comes into play to define an unanimous vote. The proxy vote has become an efficient way for shareholders to facilitate change and for activist investors to assert their force on a wide variety of corporate governance issues.

In September 2011, Sodali adopted a particular "code of business conduct", a list of business rules which every member of Sodali's team is obligated to honor. This code strengthens the relationship between Sodali and its clients, ensuring them on the competencies of its team of professionals, its consultancy services and improving their long-term performances.