Exercise of voting rights - GMSLA Provision

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2010 Global Master Securities Lending Agreement
A Jolly Contrarian owner’s manual

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Stock Loan owner’s manuals: 2010 GMSLA · 2000 GMSLA · Pledge GMSLA · OSLA

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GMSLA

Clause 6.6 in a Nutshell
Use at your own risk, campers!

6.6 Exercise of voting rights
If any voting rights arise under any Loaned Securities or Collateral, the party holding the asset in question is not required to vote it at the direction of the party that originally delivered it.
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Full text of Clause 6.6

6.6 Exercise of voting rights
Where any voting rights fall to be exercised in relation to any Loaned Securities or Collateral, neither Borrower, in the case of Equivalent Securities, nor Lender, in the case of Equivalent Collateral, shall have any obligation to arrange for voting rights of that kind to be exercised in accordance with the instructions of the other Party in relation to the Securities borrowed by it or transferred to it by way of Collateral, as the case may be, unless otherwise agreed between the Parties.
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Related agreements and comparisons

Related agreements: Click here for the same clause in the 2018 Pledge GMSLA
Related agreements: Click here for the same clause in the 1995 OSLA
Comparison: Template:Gmsladiff 6.6
Comparison: Template:Osladiff 6.6

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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.
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Summary

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.
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See also

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References