Delaware Law Amendments approved by the Corporation Law Section of the Delaware State Bar Association (DSBA) are intended to deliver specific statutory authority for Delaware businesses to utilize the blockchain to maintain corporate records.
In 2015, the then-Governor Jack Markell announced an initiative to embrace blockchain technology, which eventually saw the DSBA Corporation Law Council undertake a study into the use of blockchain technologies by Delaware corporations.
According to a report from Skadden, Arps, Slate, Meagher Flom LLP [PDF], a firm’s records would be maintained through the blockchain to record stock issuances and transfers, to maintain a list of record holders and other matters.
Section 224 would be amended to permit corporations to rely on the contents of an electronic network as the corporate records, provided the records so kept can be converted into clearly legible paper form within a reasonable time.
According to the firm, the amendments would mean that any type of stock ledger, even electronic ones, would serve three functions: enable the corporation to prepare the list of stockholders entitled to vote;