Replies to post #215512 on Wave Systems Corp. (fka WAVXQ)

[rwk]

AZwaveman / as

it is, due to poor record keeping by the brokers, it is entirely likely that both buyers of the same share will get a vote. The effect will be reveresed through proration of votes.

But most margin agreements have language to deal with the situation such as that you may subordinate your rights to a vote if you are on margin. But it's rarely enforced. There was a controversial, large takeover vote in Canada where a large pension plane wanted to vote it's shares but was prevented from doing so because they had lent their shares out as part of a revenure enhancement strategy. They became much more vigilent about the shares they lend following that.