Delaware Senate Advances Distributed Ledger Bill

The Delaware Senate has voted Senate Bill 69 out of Committee, moving a step closer to permitting the use of networks of electronic databases ("distributed ledgers") for the creation and maintenance of corporate records.

I have previously discussed the concept of distributed ledgers. The Senate bill would permit corporations to authorize, issue, transfer and redeem shares through distributed ledgers. This would ensure that, in the eyes of the state of Delaware, corporations issuing shares through blockchain are not breaching their fiduciary duty by doing so.