Delaware Law Changes Method To Record Stockholders

Delaware is known for being a trailblazer in the area of corporate law. In keeping with tradition, Delaware is the first state to formally recognize the ability of a corporation to record stockholder transactions using distributed ledger or “blockchain” technology. Effective August 1, 2017, through an amendment to Title 8 of the Delaware General Corporation Law (found here), corporations formed under the laws of the State of Delaware can maintain a ledger of stockholders using an electronic method. Prior to the amendment, Delaware corporations were not assured that using this technology to maintain stockholder records was compliant with Delaware law and relied instead on traditional methods to record stockholder activity.