While many may hold margin accounts, for retail transactions, keep in mind that many have IRA's and/or cash accounts. The 'borrowing/voting' discussion here doesn't apply to those (IRA/Cash) types of accounts. Those IRA/Cash shares can't be borrowed, because those accounts don't have margin attached.
BUT - If you signed up for a regular retail margin account, to either buy more than you have money for, or frequently to get around T+3 to sell and buy immediately again, your shares can be loaned out.
And if they are, #1 you don't know they are, and #2, the voting rights go to who bought your "loaned" shares. You are loaning out everything related to them, including the voting rights.
Now, something like a dividend on a share, does still come back to you through a pass-thru process. And a stock split, settlement, etc all would work the same way.
But as a margined account, part of that paperwork you 'signed' to have your retail account 'marginable' is a dual-edged sword, you said in that agreement your shares also could be borrowed, and if borrowed, while you maintain your long position, that share actually is 'gone' and with it went it's corresponding voting right.
If you think about it. If your share is borrowed from your margin account, and sold to me and sits in my IRA account... who should be able to vote it? _ Me _. We certainly both can't vote it -- that would be two votes for one share.
So, basically, this has been covered before -- and it does amaze me that it surprises some of the most seasoned of investors. It's not just a WAMU thing, it happens all the time on annual votes, etc. Who gets to vote. And it's all pretty clear, but many don't know it.
...Catz
.... Please, just call me Catz ;) - - - - - {and the requisite, all IMHO, do your own due diligence, and make your own investments}
