Jul 15, 2018

Market reverberates with accusations of ‘empty voting’

Last week, accusations of empty voting - where investors borrow voting shares for short periods to swing the outcome at meetings - began to reverberate around the market ahead of Premier Food's shareholder meeting next week. Short positions don't account for all the borrowed stock, say market watchers IHS Markit. "Securities should not be borrowed solely for the purpose of exercising the voting rights," says the Bank of England's money market code. Says Isla, the opacity of the voting process makes it hard to prove or disprove allegations of empty voting. A more transparent process and information to fill the empty vessels might stop them sounding off about empty voting.

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