What Is a Contract Provision? A contract provision is a stipulation within a contract, legal document, or a law. A contract provision often requires action by a specific date or within a specified period of time. Contract provisions are intended to protect the interests of one or both parties in a contract. Key Takeaways A contract
What Is Provisional Income? Provisional income is an IRS threshold above which social security income is taxable. The base, from §86 of the Internal Revenue Code (IRC), triggers the taxability of social security benefits, requiring its inclusion in gross income tax payment on excess amounts. Provisional income is calculated using the recipient’s gross income, tax-free
What Is a Provisional Notice of Cancellation (PNOC)? A provisional notice of cancellation is a means by which one participant in a reinsurance treaty can notify the other participants of their intention to withdraw from the treaty. This type of notice is only used in relation to continuous reinsurance contracts, which are those that remain
What Is a Proxy? A proxy is an agent legally authorized to act on behalf of another party or a format that allows an investor to vote without being physically present at the meeting. Shareholders not attending a company’s annual general meeting (AGM) may vote their shares by proxy by allowing someone else to cast
What is Proxy Directive? Proxy directive is a legal document assigning the health care decisions of an individual to another in the event the individual is incapacitated. Key Takeaways Proxy directive is a legal document assigning the health care decisions of an individual to another in the event the individual is incapacitated.A proxy directive is typically prepared
What Is a Proxy Fight? A proxy fight refers to the act of a group of shareholders joining forces and attempting to gather enough shareholder proxy votes to win a corporate vote. Sometimes referred to as a “proxy battle,” this action is mainly used in corporate takeovers. In the process of a corporate takeover–particularly a
What Are Proxy Materials? Proxy materials (also known as the proxy statement) are documents provided by public corporations in order that shareholders can understand how to vote at shareholder meetings, and make informed decisions about how to delegate their votes to a proxy. These are regulated by the Securities & Exchange Commission (SEC) in accordance with
What Is a Proxy Vote? The term proxy vote refers to a ballot cast by a single person or firm on behalf of a corporation’s shareholder who may not be able to attend a shareholder meeting, or who may not choose to vote on a particular issue. Shareholders receive a proxy ballot in the mail
What Is the Prudent Expert Act? The term Prudent Expert Act refers to a regulatory measure that requires the fiduciary of a defined contribution retirement plan to manage the portfolio using the same level of care, diligence, prudence, and skill as someone familiar with such matters. This rule is contained in section 404(a)(1)(B) of the
What Is a Prudent Investment? A prudent investment refers to the recognized use of financial assets that are suitable for an investor’s goals and objectives. A prudent investment considers the risk/return profile and the time horizon of an investor. Fiduciaries (such as financial advisors, attorneys, CPAs and retirement plan sponsors), whom an investor entrusts to
