2006 Minnesota Statutes

302A.449 PROXIES.
    Subdivision 1. Authorization. (a) A shareholder may cast or authorize the casting of a
vote by (1) filing a written appointment of a proxy, signed by the shareholder, with an officer
of the corporation at or before the meeting at which the appointment is to be effective, or (2)
telephonic transmission or authenticated electronic communication, whether or not accompanied
by written instructions of the shareholder, of an appointment of a proxy with the corporation or
the corporation's duly authorized agent at or before the meeting at which the appointment is to
be effective. The telephonic transmission or authenticated electronic communication must set
forth or be submitted with information from which it can be determined that the appointment was
authorized by the shareholder. If it is reasonably concluded that the telephonic transmission
or authenticated electronic communication is valid, the inspectors of election or, if there are
no inspectors, the other persons making that determination shall specify the information upon
which they relied to make that determination. A proxy so appointed may vote on behalf of the
shareholder, or otherwise participate, in a meeting by remote communication according to
section 302A.436 to the extent the shareholder appointing the proxy would have been entitled
to participate by remote communication according to section 302A.436 if the shareholder did
not appoint the proxy.
(b) A copy, facsimile telecommunication, or other reproduction of the original writing or
transmission may be substituted or used in lieu of the original writing or transmission for any
purpose for which the original writing or transmission could be used, provided that the copy,
facsimile telecommunication, or other reproduction is a complete and legible reproduction of the
entire original writing or transmission.
(c) An appointment of a proxy for shares held jointly by two or more shareholders is valid if
signed or consented to by authenticated electronic communication by any one of them, unless
the corporation receives from any one of those shareholders written notice or authenticated
electronic communication either denying the authority of that person to appoint a proxy or
appointing a different proxy.
    Subd. 2. Duration. The appointment of a proxy is valid for 11 months, unless a longer period
is expressly provided in the appointment. No appointment is irrevocable unless the appointment
is coupled with an interest in the shares or in the corporation.
    Subd. 3. Termination. An appointment may be terminated at will, unless the appointment
is coupled with an interest, in which case it shall not be terminated except in accordance with
the terms of an agreement, if any, between the parties to the appointment. Termination may
be made by filing written notice of the termination of the appointment with an officer of the
corporation, or by filing a new written appointment of a proxy with an officer of the corporation.
Termination in either manner revokes all prior proxy appointments and is effective when filed
with an officer of the corporation.
    Subd. 4. Revocation by death, incapacity. The death or incapacity of a person appointing a
proxy does not revoke the authority of the proxy, unless written notice of the death or incapacity
is received by an officer of the corporation before the proxy exercises the authority under that
appointment.
    Subd. 5. Multiple proxies. Unless the appointment specifically provides otherwise, if two or
more persons are appointed as proxies for a shareholder:
(a) Any one of them may vote the shares on each item of business in accordance with specific
instructions contained in the appointment; and
(b) If no specific instructions are contained in the appointment with respect to voting the
shares on a particular item of business, the shares shall be voted as a majority of the proxies
determine. If the proxies are equally divided, the shares shall not be voted.
    Subd. 6. Vote of proxy accepted; liability. Unless the appointment of a proxy contains a
restriction, limitation, or specific reservation of authority, the corporation may accept a vote or
action taken by a person named in the appointment. The vote of a proxy is final, binding, and not
subject to challenge, but the proxy is liable to the shareholder or beneficial owner for damages
resulting from a failure to exercise the proxy or from an exercise of the proxy in violation of the
authority granted in the appointment.
    Subd. 7. Proxy in control share acquisition. Notwithstanding any contrary provision of
this chapter, a proxy relating to a meeting of shareholders required under section 302A.671,
subdivision 3 , must be solicited separately from the offer to purchase or solicitation of an offer
to sell shares of the issuing public corporation. Except for irrevocable proxies appointed in the
regular course of business and not in connection with a control share acquisition, all proxies
appointed for or in connection with the shareholder authorization of a control share acquisition
pursuant to section 302A.671 shall be at all times terminable at will prior to the obtaining of the
shareholder authorization, whether or not the proxy is coupled with an interest. Without affecting
any vote previously taken, the proxy may be terminated in any manner permitted by subdivision
3, or by giving oral notice of the termination in the open meeting of shareholders held pursuant
to section 302A.671, subdivision 3. The presence at a meeting of the person appointing a proxy
does not revoke the appointment.
    Subd. 8. Limited authority. If a proxy is given authority by a shareholder to vote on less
than all items of business considered at a meeting of shareholders, the shareholder is considered to
be present and entitled to vote by the proxy for purposes of section 302A.437, subdivision 1, only
with respect to those items of business for which the proxy has authority to vote. A proxy who is
given authority by a shareholder who abstains with respect to an item of business is considered to
have authority to vote on the item of business for purposes of this subdivision.
History: 1981 c 270 s 73; 1984 c 488 s 17; 1Sp1985 c 5 s 18; 1986 c 431 s 1; 1991 c 49 s
11,12; 1993 c 17 s 37; 1997 c 10 art 1 s 21; 2002 c 311 art 1 s 19