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many large corporations rent halls to encourage attendance. The purposeof the annual shareholders meeting is to elect the board of directorsand to conduct other necessary business. The president or chairmanof the board usually presides at shareholders meetings.A majority of the shareholders must be present or represented byproxy before business can be conducted at a shareholders meeting. Aproxy (see Figure 29.2) is the right to vote another shareholder’s stock.It is a power of attorney, authorizing another to vote.Proxy Voting Sometimes shareholders try to control the election ofthe board of directors by buying a majority of the shares. If the shareholdersdo not have enough money to buy the necessary shares, or ifthey cannot find enough shares for sale, they solicit the proxies of othershareholders.Voting Trusts Under the terms of a voting trust , shareholderstransfer their voting rights to a trustee. A voting trust attempts to controlthe corporation by concentrating voting power in the voting trustees.The voting trust generally cannot be changed for a specified time period.Most state limits run from 10 to 21 years. Voting trusts must be inFigure 29.2THE BACK-PACK CORPORATIONProxyThe undersigned hereby appoints GEORGE KINNARD and MARY ANNCONNERLY and each of them, proxies, and with power of substitution(i.e., power to name replacements), to attend the Annual Meeting ofshareholders of The Back-Pack Corporation, at the company’s main office inGreen Bay, Wisconsin, on April 15, 20--, commencing at 10 A.M. and anyadjournment thereof, and there to vote all the shares of the undersigned forelection of directors, and on any other business that may properly come beforethe meeting.Dated: March 20, 20 -- Roberta J. Hogan (L.S.)SignatureProxy # 125413Account # 0590363Roberta J. Hogan37 Winona LaneDes Moines, Iowa630 Unit 6: Starting a BusinessPROXIESA shareholder can appoint another shareholderto vote his or her shares of stock by signing aproxy. Under what circumstances might ashareholder grant a proxy to anothershareholder?