What is proxy voting?
With the implementation of Shareholder Rights Directive II (SRD2), there is an increasing regulatory demand to encourage long term shareholder commitment and discourage excessive risk. The main objective of this directive is to improve transparency and facilitate shareholder engagement. The directive sets the right to identify shareholders and mandates intermediaries like custodians to take an active role in providing information. SRD2 also aims to facilitate the process of voting and exercising other shareholders’ rights on an international level, by requiring intermediaries to transmit corporate actions and general meeting or proxy voting announcements without any delay.
Automation and Ease
Blockchain makes voting incredibly simple and can automate the entire process. Voting can be much easier, shareholders can voice their opinions, and businesses can easily remain compliant. Voting can also be private with no data leakages.
Tokenization provides a possible solution for custodians and intermediaries to comply with this directive, by having direct access to a single source of truth and a consolidated overview of all asset holders. Whilst providing opportunities to offer more services to encourage shareholder engagement and data analyses.
Digital share registries use blockchain technology to enhance their data, enabling automation and reconciliation by businesses and shareholders, allowing them to automate costly and complicated processes.See more
Smart Bulletin Boards can be used to indirectly match qualified buyers and sellers of security tokens. If both parties come to terms and a deal is struck, they can execute the trade.See more