The Investor Suffrage Movement is going to use the proxy process to transform corporate governance. But that proxy process is in disrepair. A first step before we can  implement the Global Proxy Exchange is to start using the proxy process as it was originally intended—as it has not been used in almost a century.

During the 2008 proxy season, we ran proxy transfer trials. Volunteers who own shares abandoned the stylized process of filling out proxy assignment cards mailed out by corporations' management. Instead, they signed notarized letters assigning other volunteers as their proxies. Those volunteer proxies attended shareholder meetings and voted the shareholders' behalf. You can read of one eye-opening account from the 2008 proxy transfer trials.

Legally, a proxy can exercise for a shareholder any ownership rights that shareholder could exercise for herself. In future proxy transfer trials, we will test this by having volunteer proxies submit shareholder proposals on shareholders' behalf. 

In future proxy transfer trials, we will also have shareholders appoint the proxy exchange itself as their proxy, and the proxy exchange will then send volunteers to attend and vote at shareholder meetings as its representative.

These trials are like finding an antique engine in your grandfather's garage, cleaning it, oiling it, reassembling it—and then firing it up to see if it works. Today's proxy system is just such a broken down engine.

If you would like to participate in future proxy transfer trials, e-mail us. We will notify you when those trials are planned. Please indicate if you are a shareholder who would like to appoint a proxy or a volunteer who would like to serve as a proxy. We look forward to your participation.

Read of one eye-opening experience from the trials.