The person whose shares were borrowed does not have voting rights until his shares have been returned. That's the only right they lose.
& "Since the lender always holds cash collateral for the entire market value of his stock, he has in essence turned his certificate into cash while still retaining ownership. For as long as the stock remains on loan, the cash can be invested in some interest bearing instrument, thus bringing in extra income to the lender and providing the incentive to loan stock to a short seller. "
The shares you borrowed may not have been borrowed from a person's account. They may have come from inventory held by brokers (beyond what their customers own), or borrowed from other brokers' inventory, or borrowed from institutional investors.
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