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felipeko | 5 years ago

And what happens in the shareholder meeting?

Would the previous majority shareholder group lose their majority even if they had sold no shares?

Or would the new majority shareholders have no decision making power even though they have more "shares"?

discuss

order

rocqua|5 years ago

AFAIK a stock that is available to lend does not have voting power. Hence, if you put a stock up for lending (even if no-one actually lends it) you can no longer vote with it.

This can be used to get more votes by borrowing stocks just to hold and vote.

felipeko|5 years ago

Yes, that is my understanding.

But I'm asking in the case of naked short, which is what is being defended as "superior system" in this thread.