[hobbyjogger]

The term "beneficial owner" also includes anyone who has sole or shared voting power over the security (not just those with sole or shared "formal title", economic interests and/or power to sell or transfer the security).

A major reason for that is trying to prevent "gaming" of votes, along the lines of your footnote [1]. Just like right now, I don't think the LTSE proposal would require an outright ban on these arrangements--it just requires the issuer/exchange to make sure the disclosure requirements for "beneficial owners" are sufficient for them to "reset" the voting clock if/when voting power is transferred.