Blockchain Proxy-Voting to Aid Shareholder Engagement in Organizations

Reported by CryptoNewsZ, “The present era is of globalization where the technological advancements are shrinking the distances between the nations making the world a cozy abode of different origins, ideologies, and people. Living in the 21st century, we are very well aware of the role, digitization has played in bringing a revolution in the process of globalization.

“Today, nations are connected from one another through the exchange of data which has fostered to build a society that is free from borders and national legislations. The growth of the digital niche has made it possible for a single-person company to shine as a multi-national firm. Blockchain technology and Security Token Offerings have played an important role in giving a boost to organizations in expanding their business across the globe. They help firms in raising funds from any corner of the world with ease and less complexity.

“The new-age technology not only benefits the startup ventures but also aids the already running public multi-national enterprises in a big way especially in the field of corporate governance. These giant enterprises proliferate into varied territories exposing themselves to an array of different infrastructures, markets, legislation, and customer needs. Also, the location of shareholders anywhere in the world lays a direct impact on corporate governance.

“Corporate governance is an inevitable part of an MNE system as it lays out the roadmap for it to follow in accordance with the needs and aspirations of the shareholders. To achieve the primary aim of shareholder satisfaction, there are many solutions that can be easily employed. One is the laying down of the AGM or the Annual General Meeting where shareholders are allowed to give their votes on the proposals proposed by the management.

“With shareholders spread across the globe, the process of organizing an AGM becomes quite cumbersome and expensive too. The more the number of shareholders, the higher are the costs for the enterprise. Sometimes, in order to act democratically, organizations use proxies in place of actual shareholders. In proxy voting, shareholders allow their representatives chosen by them to give a vote.

“Proxy voting depends on varied divisions of intermediaries including financial institutions and information service providers. This chain of mediators makes the process inefficient, pricey, and complex because of less transparency. It is crucial to understand the voting mechanism before getting onto the blockchain technology merits. Below are explained the different democratic processes…”

Continue to read the full story at CryptoNewsZ.

Track the current price of Bitcoin, Ethereum, Ripple and altcoins here.