Who is the beneficiary of a proxy in a corporate setting?

In a corporate setting, the beneficiary of a proxy is the shareholders. A proxy is a legal instrument that allows shareholders to delegate their voting rights to another party, often because they are unable to attend a shareholders' meeting in person. By doing so, shareholders ensure that their interests are represented, and their votes contribute to the decision-making processes that impact the corporation, such as electing the board of directors or approving significant corporate transactions.

Since shareholders have ownership rights in a corporation, they ultimately benefit from any decisions made through the proxy voting process. The use of a proxy is a fundamental aspect of corporate governance, allowing for broader participation among shareholders, even those who might be unable to physically attend meetings. This process reinforces the principle of shareholder democracy, where shareholders can influence the direction of the company, regardless of their physical presence at the meeting.