What happens to the voting rights of stockholders who submit a proxy?

When stockholders submit a proxy, they are essentially authorizing another person to vote on their behalf at a shareholder meeting. This means that while the stockholders themselves are not physically present to cast their votes, they retain ownership rights and can choose who will represent their interests in the decision-making process.

Thus, submitting a proxy does not equate to losing their voting rights completely; instead, it allows them to transfer their voting rights temporarily to someone else, granting that individual the authority to vote in alignment with the stockholder’s preferences. This process ensures that stockholders who cannot attend meetings for any reason still have a voice in corporate governance through a trusted representative.

As a result, the correct understanding revolves around the concept of delegation of voting power while retaining ownership.