Replies to post #64660 on Biotech Values

[iwfal]

Let's assume 100 true shares out and each is shorted 10 times. Everyone votes and nobody holds paper certs. 600 shares are voted yes, and 400 shares are voted no.

The clearinghouse just reports to the company that 60 voted yes and 40 voted no. Nobody is the wiser... well, except for those who read the fine print.

That wouldn't seem horrible unless someone decided to, for example, short shares to themselves multiple times. ?

Not good, but in general practice probably not too distorting?

[zipjet]

Hi David,

>>The clearinghouse just reports to the company that 60 voted yes and 40 voted no. Nobody is the wiser... well, except for those who read the fine print.

Do you have a cite/link for that? I have not heard that before. In fact, I have asked legal departments of two large brokerage firms how this worked and never got an answer.

ij