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A proxy agreement is designed to allow an individual to act on behalf of another individual or company in a legal matter. This type of agreement is commonly used in a corporate stock voting session.he document gives the written authority for the proxy to serve in the individual's interests and contains the terms of agreement. The document will specify the parties that are part of the agreement, plus the rights and responsibilities the proxy is able to undertake on behalf of the individual.
BREAKING DOWN 'Proxy Tax'. A proxy tax is a penalty, and can also be accompanied by other charges or penalties. If an organization pays a proxy tax on all of its lobbying expenditures then it allows members, whose dues paid for those efforts, to be able to deduct the value of their dues from their taxes. RELATED TERMS.