I've come across some weird capitalization in legal texts. I've seen it multiple times, so I wanted to ask if anyone knew if there were different schools of thought on this issue.

Here's an example:

<begin quote>
It advises that "Proxies may also be solicited in newspapers or
other publications" and that the total amount...
<end quote>

As you can see, the capital "p" beginning the word "proxies" is capitalized,
where we would expect to see something like "{p}roxies..."

In other examples I have come across, I've seen things like

It advises that "{P}roxies may also..."

Here, the author makes a point to put a capitalization in the middle of a
sentence when it begins a quote.

Anyone have any thoughts on this?

Both of your examples, Tim, have capital letters at the beginning of a quotation. I wonder if, indeed, these are direct quotations of sentences starting with proxies. In which case, though, I believe that would be wrong, and a comma would be missing.