To get investors to participate, the exchange has to tempt them with a reward, so LTSE plans to use voting rights as a carrot. If investors divulge the real name of the beneficial owner to management (as opposed to hiding behind a "street name") they'll start to gain more voting rights the longer they've held their shares.
First of all, Corporations have a record of their investors, which is how you vote on proposals or show-up to the annual stockholder meeting — and this excludes the basic fact beneficial ownership is the backbone of all AML programs for Broker-Dealers — so we are already at a non-start. Second, holding in the “Street’s Name” relates to the clearing component for the DTC; so this proposal would have trades executed how exactly? Finally, Shareholder Voting Rights is an operation of state corporate law, not the SEC, so how exactly does this comport to Delaware Corporate Law Del Code § 212 Voting Rights of Stockholders; Proxies; Limitations — or for that matter, any state’s corporation law? There is too much at stake to adopt a dismissive attitude toward supposed “formalities” of law, process, and institutional structure in this area. Law is formal by its very nature — and mere “formalities” are often outcome- determinative.