Nice Volume Today, page-12

cujo -

It's an interesting question as to whether each holding can be lent out to shorters, or not. Last time I looked, the FAR shares I have bought through an online broker and held in chess may not be lent out without my permission. And I will never give it.

On the other hand, FAR shares that I have bought via a "member direct" function of a public super fund are not in my control. They may be lent out without my permission, with the intention of earning a fee for the loan, where the fee doesn't accrue to my account.

Moreover, I don't even get to vote these shares on AGM or other General meeting motions, for example on board elections, renumeration reports, performance rights etc. I can only vote them where a motion affects my ownership of those shares in some way. For example, a share consolidation, rights issue or a takeover. In the meantime, I am free to sell them, buy more and receive any dividends or proceeds of sale.

It becomes easier to see who could be lending FAR shares for shorting and that maybe the same ones are voting for management benefits.