The AGM is often considered to play an important role in direct shareholder monitoring of directors and corporate blockholders. However, its practical functioning suffers from large obstacles.
In this research we outline the AGM’s flaws and argue that blockchain technology can bring this yearly classical gathering to the 21st century. Using a blockchain that records shareholder voting on a private ledger, shareholder decision-making can be faster and cheaper. Once a voting item is placed in the blockchain, shareholders are notified and can exercise their tokenized voting rights. When a majority is reached, the voting outcome becomes immutable and verifiable.
This state-of-the-art decentralized form of ‘meetings of and with shareholders’ offers large advantages: faster decision-making in a decentral environment and substantially reduced voting and meeting organizing costs, which can enhance shareholders’ willingness to participate.
Firms have inefficiently low incentives to innovate when other firms benefit from their inventions and the innovating firm therefore does not capture...
The paper proposes a framework for judicial review of board decisions that have been augmented by an AI. It starts from the assumption that the law treats...