Delaware Senate Bill 69 has been passed, allowing corporate records to be managed using DLT. This will include being able to manage a corporate stock ledger, which specifies stockholders, stores information and maintains the records of issued and transferred shares of stock. The bill will need to be signed into law by the state’s governor, which is expected to happen by the end of the month. We have previously discussed this in an earlier update here.
The bill enables the digitisation of securities administration and will also prevent shareholders of Delaware-based companies from suing over an alleged breach of fiduciary duty because of the use of blockchain technology.
This is a legislative milestone for the implementation of DLT solutions in corporate registry management and reflects the regulatory regime adjusting to technology developments in a substantive manner. We infer from the legislation certain changes that may need to be implemented in Australia’s regulation of company registers if DLT solutions are to be implemented here.