Certainly a pertinent issue.I think most companies do not follow the letter to the law. The possible reason is more the enforcement incapacity than just allowing the breach.Practical issues rule the day.
Section 149 of the Companies Act 1965 states that "a member is not entitled to appoint a person who is not a member of the company as his proxy unless that person is an advocate, an approved company auditor or a person approved by the Registrar of companies in a particular case."
Roselie from Genting Berhad explained to me that you must be firstly a shareholder to be made a proxy. If not, you would fall under the category called "illegal proxies". I guess no company is stopping these people who are not shareholders from being nominated as proxies at AGMs.
Anyway, if they can get rid of the illegal proxies, a lot of problems especially the 'greedy mob syndrome' can be cut off at the bud.
So,when you attend the next AGM, ask yourself - are you attending as a valid proxy or otherwise?
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