The borrower holds legal title to the stock, while the lender holds title to the collateral pledged by the borrower. This is why the borrower can sell the stock unencumbered to whomever in the market. The original asset owner retains an economic interest via the stock borrow agreement. Person C that bought off the shorter, definitely owns the stock and is on the register.
ASIC v ISX Hearing, page-2475
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