What does a proxy enable in terms of voting rights?

A proxy is a legal authorization that allows one person to act on behalf of another, particularly in the context of voting rights at shareholder meetings. When shareholders are unable to attend these meetings in person, they can give their voting rights to someone else through a proxy. This delegation of voting rights enables another individual—often a company representative or another shareholder—to cast votes according to the wishes of the absentee shareholder.

This process ensures that shareholders who cannot be physically present still have a voice in decisions made regarding corporate governance, such as electing board members or approving mergers. By using a proxy, shareholders can maintain their influence in corporate matters even when they are not directly participating in a meeting.

In contrast, the other options relate to voting methods or outcomes rather than the delegation itself. Voting by mail involves a specific method of casting a vote but does not encompass the broader concept of assigning voting authority to another party. Automatic voting in favor suggests a predetermined outcome without consideration of the actual vote cast, which is not how proxies function. Canceling a vote implies that a vote could be retracted, which does not pertain to the concept of using a proxy for voting.