One of the most important corporate governance issues for publicly traded companies is shareholder voting.
Identifying and reaching shareholders with timely communications to conduct a transparent, compliant vote or proxy vote for common stock can be a costly challenge.
A new Security Token Offering (STO) platform from Blockstation is already changing the status quo, leveraging the blockchain to simplify and streamline corporate governance and proxy voting for companies of all sizes. See if your offering qualifies for a Blockstation STO
By: Jai Waterman, Chief Enterprise Architect
Historians who study capital markets are in luck: if they ever wanted to examine how publicly traded companies ran corporate governance and common share voting back in the 1970s, they can look at pretty much any company on the stock market today.
It’s almost inconceivable that a modern company in the Information Age would have a hard time tracking down their shareholders, verifying their mailing address, sending out information packages, collecting proxies and counting votes, but that’s exactly where we are.
The system is due for a shake-up.
At Blockstation, we see a way for everybody in the financial ecosystem including stock exchanges, regulators, depositories, broker-dealers, and issuers to take advantage of modern blockchain technology and finally bring corporate governance into the 21st century: the Security Token Offering (STO).
Modern corporate governance for modern capital markets
One of the biggest advantages of a Blockstation-powered STO is that our platform is a centralized hub that allows every member of the ecosystem to take critical data out of their siloed systems and share it to the blockchain in real time.
This is huge for issuers, because all of a sudden their transfer agent will have a much easier time finding and verifying shareholder contact information - even when tracking shares through multiple layers of broker-dealers.
And the benefits don’t end there:
Easier access to shareholder contact information means more reliable and timely communications with shareholders, ensuring they have enough time to review the AGM package and either submit their vote or name a proxy.
Issuers can also use this information to create more touch points with shareholders, providing them with news and value-added communications beyond the financial reports required by regulation.
In comparison, with today’s siloed and often paper-based process it’s surprisingly common for shareholders to receive their materials after the vote has taken place, and value-add touch points are rare.
More transparency and trust
Even with current digital systems, shareholders often have no way of knowing if their vote or proxy nomination successfully made its way to the issuer and was recorded accurately. With a Blockstation STO they can exercise their voting rights and verify their vote directly on the blockchain, confident that it will store an immutable record of their action as well as process it accurately.
The platform also grants access to regulators, who can monitor anonymized voting activity in real time to ensure a fair, compliant marketplace.
Dramatically lower costs
Any time you can take paper and manual labor out of the equation, you’re bound to save money, which is exactly what verifying your shareholders, sending them information, and conducting votes on the blockchain accomplishes. No more printing and mailing shareholder voting packages. No more manual tracking of proxy forms.
That adds up to tens of thousands of dollars per year you can save on corporate governance and put to work growing your business.
Real, live STOs are already happening
And Blockstation is at the forefront of this revolution, working with regulated financial institutions and ambitious, innovative issuers to list the world’s first STOs on a major national stock exchange later this year.
We truly believe in the power of STOs to spur innovation, drive competition, and create new investment opportunities on regulated, trusted financial markets. Are you an issuer interested in conducting an STO?
Are you a regulator or stock exchange Interested in learning more about STOs?
The Blockstation team is here to answer any questions you have. Email firstname.lastname@example.org to get started.