Why might a client be unable to vote his proxy for a specific stock?

The situation where a client is unable to vote his proxy for a specific stock often arises from participation in securities lending. When clients lend out their securities, they transfer the rights associated with those shares, including the right to vote, to the borrower. During the period in which the shares are lent, the original owner effectively loses voting rights because the shares are no longer in their possession. The borrower is typically the one who can exercise the voting rights for the duration of the loan. This is a common occurrence in situations where institutional investors or other entities engage in short-term lending of their shares to obtain liquidity or earn additional income from their portfolios.

Other factors listed, such as issues with NOBO forms, record dates, or failed settlements, can cause different complications but do not directly affect the basic transaction of voting rights in the way that securities lending does. In contrast to securities lending, those issues could relate to administrative problems or timing that might allow the owner to retain some level of control or rights over their shares. Understanding the mechanics of securities lending is crucial for clients to navigate their rights and obligations regarding voting proxies.