>"The securities represented by this proxy will be voted as directed by the holder, however, if such a direction is not made in respect of any matter, this proxy will be voted as recommended by Management."

The way I understand it. the company has a listed record of all the the proxis sent out. Therefore, 'this proxy' is on their list, and since it was not returned by mail or registered online as a vote, they can be counted as a vote as was recommanded by the managment.