Exercise of voting rights - GMSLA Provision
2010 Global Master Securities Lending Agreement
Clause 6.6 in a Nutshell™
Full text of Clause 6.6
Related agreements and comparisons
Content and comparisons
Paragraph 6.6 of the 2010 GMSLA is materially identical to Paragraph 6.3 of the 2000 GMSLA, as is 6.3 of the 2018 Pledge GMSLA, except that in the 2018 Pledge GMSLA it doesn’t talk about Collateral, seeing as the Borrower hasn’t given up title to the Collateral in the first place, having only pledged it, and therefore can still vote it without the Lender’s help.
Note the tension between this provision — the implication being, if you want to vote your shares, you should recall them — and Paragraph 6.7 which implies the Lender has some right to the fruits of any corporate action that should happen during a Loan, should the Lender not recall the Securities.