2020 Colorado Revised Statutes
Title 7 - Corporations And Associations
Article 107. Shareholders
Section 7-107-203. Proxies.

(1) A shareholder may vote the shareholder's shares in person or by proxy.

(2) Without limiting the manner in which a shareholder may appoint a proxy to vote or otherwise act for the shareholder, the following shall constitute valid means of such appointment:

1. A shareholder may appoint a proxy by signing an appointment form, either personally or by the shareholder's attorney-in-fact.

2. A shareholder may appoint a proxy by transmitting or authorizing the transmission ofa telegram, teletype, or other electronic transmission providing a written statement of the appointment to the proxy, to a proxy solicitor, proxy support service organization, or other person duly authorized by the proxy to receive appointments as agent for the proxy, or to the corporation; except that the transmitted appointment shall set forth or be transmitted with written evidence from which it can be determined that the shareholder transmitted or authorized the transmission of the appointment.

3. An appointment of a proxy is effective against the corporation when received by thecorporation, including receipt by the corporation of an appointment transmitted pursuant to subsection (2)(b) of this section. An appointment is valid for the term specified in the appointment form and, if no term is specified, is valid for eleven months unless the appointment is irrevocable under subsection (5) of this section.

4. Any complete copy, including an electronically transmitted facsimile, of an appointment of a proxy may be substituted for or used in lieu of the original appointment for any purpose for which the original appointment could be used.

5. An appointment of a proxy is revocable by the shareholder unless the appointmentform conspicuously states that it is irrevocable and the appointment is coupled with an interest. Appointments coupled with an interest include the appointment of any of the following persons or their designees:

1. A pledgee;

2. A person who purchased or agreed to purchase the shares;

3. A creditor of the corporation who extended credit to the corporation under termsrequiring the appointment;

4. An employee of the corporation whose employment contract requires the appointment; or

5. A party to a voting agreement created under section 7-107-302.

6. The death or incapacity of the shareholder appointing a proxy does not affect theright of the corporation to accept the proxy's authority unless notice of the death or incapacity is received by the secretary or other officer or agent authorized to tabulate votes before the proxy exercises the proxy's authority under the appointment.

7. An appointment made irrevocable under subsection (5) of this section is revokedwhen the interest with which it is coupled is extinguished, but such revocation does not affect the right of the corporation to accept the proxy's authority unless:

1. The corporation had notice that the appointment was coupled with that interest andnotice that the interest is extinguished is received by the secretary or other officer or agent authorized to tabulate votes before the proxy exercises the proxy's authority under the appointment; or

2. Other notice of the revocation of the appointment is received by the secretary orother officer or agent authorized to tabulate votes before the proxy exercises the proxy's authority under the appointment.

8. The corporation shall not be required to recognize an appointment made irrevocableunder subsection (5) of this section if it has received a writing revoking the appointment signed by the shareholder either personally or by the shareholder's attorney-in-fact, notwithstanding that the revocation may be a breach of an obligation of the shareholder to another person not to revoke the appointment. This provision shall not affect any claim such other person may have against the shareholder with respect to the revocation.

9. Unless an appointment otherwise provides, an appointment made irrevocable undersubsection (5) of this section continues in effect after a transfer of the shares and a transferee takes the shares subject to the appointment; except that a transferee for value of shares subject to an irrevocable appointment may revoke the appointment if:

1. The transferee did not know of its existence when the transferee acquired the shares;and

2. The existence of the irrevocable appointment was not noted on the certificate representing the shares or on the information statement for shares without certificates.

(10) Subject to section 7-107-205 and to any express limitation on the proxy's authority appearing on the appointment form, a corporation is entitled to accept the proxy's vote or other action as that of the shareholder making the appointment.

Source: L. 93: Entire article added, p. 770, § 1, effective July 1, 1994. L. 96: (3) amended, p. 1318, § 20, effective June 1. L. 2004: (6), (7)(a), (7)(b), and (9) amended, p. 1496, § 250, effective July 1. L. 2019: (3) and (9) amended, (SB 19-086), ch. 166, p. 1927, § 31, effective July 1, 2020.