Activity: Talk or presentation types › Invited talk › Scientific
Blockchain is a technology that potentially can offer solutions for classical corporate governance inefficiencies, especially in the relationship between shareholders, corporate boards and the company. For instance, Annual General Meetings (AGMs) are generally considered dull mandatory yearly rituals and their important theoretical functions (the information, forum and decision-making functions) are de facto eroded. In a key note address for the Council of Institutional Investors, vice-chancellor Laster called the Delaware system of shareholder voting and engagement “absurd” and recommended blockchain technology to solve the issues. The recent prototypes of blockchain-based AGMs including the blockchain patent obtained by Broadridge for a blockchain-based proxy voting system perhaps show that blockchain technology as tool for shareholder participation is feasible in practice.
In this presentation, after a short introduction to the basics of corporate governance, the impediments to the current corporate governance system, with in particular shareholder voting and engagement systems, are addressed with a special focus on the US and Europe. Next, the application of blockchain is considered: would this technology, as vice-chancellor Laster indicates, indeed offer an important and relevant solution to current corporate governance issues?