Voting rights

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GMSLA Anatomy


UK money Markets Code
6.3 It is accepted good practice in the market that securities should not be borrowed solely for the purpose of exercising the voting rights at, for example, an AGM or EGM. Lenders should also consider their corporate governance responsibilities before lending stock over a period in which an AGM or an EGM is expected to be held.

2010 GMSLA: Full wikitext · Nutshell wikitext | GMLSA legal code | GMSLA Netting
Pledge GMSLA: Hard copy (ISLA) · Full wikitext · Nutshell wikitext |
1995 OSLA: OSLA wikitext | OSLA in a nutshell | GMSLA/PGMSLA/OSLA clause comparison table
From Our Friends On The Internet: Guide to equity finance | ISLA’s guide to securities lending for regulators and policy makers

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Stock lending agreement comparison: Includes navigation for the 2000 GMSLA and the 1995 OSLA

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GMSLA
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The Bank of England’s UK money Markets Code has the following (see right) to say on voting rights. You aren’t meant to do it.

Other views may prevail in other markets, but the main reason for borrowing stocks is (a) to short them; or (b) to clean up your balance sheet and optimise your funding, you shouldn’t be in the market for stock borrows if you want to vote on securities. If you want to vote on securities, you buy them. (That of course sends a price trigger into the market that borrowing and holding stocks does not).