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ARTICLE · 19 JUNE 2017

Taking Stock In Blockchains

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Corporate lawyers and software developers have been watching eagerly as the State of Delaware takes steps to enable Delaware corporations to issue shares of their stock as digital tokens.

United StatesCorporate/Commercial Law

Corporate lawyers and software developers have been watching eagerly as the State of Delaware takes steps to enable Delaware corporations to issue shares of their stock as digital tokens. Instead of recording shares on paper ledgers, corporations will record ownership using "Blockchains": ledgers that are secured by cryptographic keys that can be distributed around the world without fear of tampering.

Why all the excitement? What's so wrong about how corporations have been issuing shares and keeping track of shareholders? What's aspects of Delaware corporate law, used reliably since Delaware first enacted its corporate laws in 1899, now need a fix?

On March 27, 2017, the Corporation Law Section of the Delaware State Bar Association approved proposed amendments to the Delaware General Corporation Law (DGCL) that had been proposed by the DSBA Corporation Law Council. These amendments address changes that are needed for Delaware corporations to issue and manage their

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