Rsv Shareholder's Action Group

MikeDP
re voting rights: I wonder if you have misread and or misunderstood
my previous post and comments . I am not aware of any
conflict in principle between the views you have expressed and
mine as posted above . Many nominee brokers but not all do
require that there are sufficient cash funds in the trading account
in order to execute a deal . When the deal has been done the
admin of settlement then is between the buyers broker and
the seller/seller's broker and the client's cash account is
debited accordingly . Settlement means that both parties must
deliver by due date as per contract . If one party to this
settlement indicates readiness to complete settlement and
the opposite party is not ready then presumably the exchange
of cash for shares can not take place . The exception may be
if the client is late to deliver cash but the broker is willing to
advance cash for settlement and then charge interest to the client .
If any delay of settlement is caused by the sellers failure to
deliver shares on time then the buyers voting rights may be
impaired . Depending on who is responsible for the delay the
buyer then may have a legitimate grievance . I am sure you
know all that . What is the problem ?

Mike:
P.S. : perhaps this is the part you have difficulty with:
You say:
"I simply dont see why in principle anyone should have
a right to vote until his money is in the hands of the seller."
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It depends who is causing the extra delay and why .
If the contracted settlement date is on a Tuesday , the buyer
is ready, willing and able to pay and settle but the seller is not
this presumably will stop the settlement .It's a bit different with
property since the sellers solicitors can and often do give
undertakings to deliver documents later to allow completion
to take place . For share settlement presumably both parties
to the settlement need to exchange cash against shares
simultaneously to ensure that they are getting what is owed
to them . so if , as above, settlement has failed on the Tuesday
but an AGM is held the following Monday then the buyers name
may not appear on the register or the broker nominee allocation
of eligible shares will not have been credited for this pending purchase .
It should have been registered and thereby would confer the voting
rights but due to sellers default was not . The situation is quite
different if the buyer fails to honour the contract .

Fair enough ?? Any problems with that ?