Recently, the Delaware Senate passed Senate Bill (SB) 69, which would amend the Delaware General Corporation Law (DGCL). This bill paves the way for “distributed ledger shares,” a development that could have national implications.
On June 6, 2017, the Delaware Senate passed SB 69, an Act to Amend Title 8 of the Delaware Code Relating to the General Corporation Law, by a vote of 20-0 (with one abstention). According to public records, on June 14, the bill was reported out of the House Judiciary committee and placed on the ready list. The bill still needs to be approved by Delaware’s House of Representatives and signed by Governor Jack Carney before it can become law.
SB 69 would legalize corporate authorization, issuance, transfer, and redemption of shares through a distributed ledger. In addition, the amendment of the DGCL would protect companies from lawsuits alleging breach of fiduciary duty for utilizing blockchain technology. The bill represents a major achievement for the Delaware Blockchain Initiative (DBI), started by former Governor Jack Markell.
Andrea Tinianow, a Delaware state official, and Caitlin Long, president of Symbiont, noted the importance of this legislation on the Harvard Law School Forum on Corporate Governance and Financial Regulation. “By being the first to adopt the technology, the State will maintain its leadership in corporate registry services,” they wrote.