Re: When A owns shares...
First, sorry for mis-represnting your position, not intentional.
On dividends, this is simple. The borrow arrangement adjusts for it. My question on dividends was if A's dividend payment still recieves the tax break, as it is no longer really a dividend, just a payment in-leue of a dividend.
On the voting issue, try and make it real simple by assuming eveybody has paper certs. In that case A put his cert into a brokers hands, and he lent it to B who sells it to C. The share (and vote and dividend) is now with C.
Why should the company care the nature of how the share got where it is? They don't know or care why C now legally has it. You (A) could have sold it, lent it, willed it, or lost it in Vegas. C now has it, and that's the story.
There are not more paper certs than XYZ printed, just that A thinks he has one when in reality C has it.
A has no legal rights, period.
