Correct me if I am wrong, but I was assuming the borrower of shares has to vote only under the direction of the lender.
If the lender doesn't direct the borrower on how to vote, I'm not sure if the borrower has any authority to vote at all, since they don't own the shares.
I'm not right up with the legalities here, and it would be good if someone could help me out regarding the rights of the borrower to vote at an EGM.
I didn't think the borrower had any rights to vote except under the direction of the lender, who can elect to vote (or not) at an EGM anyway, regardless of whether they lend out their shares to someone or not, because if they have lent out their shares they simply direct the borrower to vote exactly how the lender says.
Which means the only reason someone would borrow shares of a company is simply to sell them Short.
Am I right or wrong in my understanding? I'm not sure. Thanks for the help anyone.
Gw
PPL Price at posting:
14.5¢ Sentiment: None Disclosure: Held
