Unless you invest exclusively in locally-based companies, it's unlikely that you have the time or financial resources to attend each meeting. Yet, through the company's proxy card and proxy statement, you have an opportunity to voice your opinion, just the same as if you were a member of the audience. Beginning investors often feel they don't know enough about investing to exercise this privilege. But voting a company's proxy has little to do with your investment background. Just as with voting in a national or local election, it's simply a matter of familiarizing yourself with the items up for vote, then casting your ballot.
Companies often go to great lengths to encourage their shareholders to return their proxy.
And there is more than one reason why. We're always striving to get that percentage up. It's routine for Ashland Oil to send a follow-up letter to its shareholders, reminding them to complete and mail their proxies. Hausrath gives three reasons. This is good news for shareholders.