A Dole Foods lawsuit from 2013 showed that the company had 12 million more shares of its stocks than it had originally known. According to a public
A Dole Foods lawsuit from 2013 showed that the company had 12 million more shares of its stocks than it had originally known.
According to a publication in Bloomberg (Bloomberg.com), tropical-fruit tycoon David Murdock, chairman, chief executive officer and biggest shareholder of Dole Food Co., took it private for $13.50 a share. Many shareholders felt that Murdock has driven down the value of the company so that he can buy the company cheaply. They sued him, and they won, wrote Bloomberg.
“Distributed ledger technology offers a potential technological solution by maintaining multiple, current copies of a single and comprehensive stock ownership ledger.The State of Delaware has announced its support for distributed ledger initiatives.”, as written on page 9 in the memorandum opinion of the judge presiding over the Dole case, Delaware Chancery Court vice chancellor J. Travis Laster (full opinion available at: http://courts.delaware.gov/Opinions/Download.aspx?id=252690).
Blockchain may be a solution?
Laster, a supporter of blockchain technology, was reported saying that the blockchain allows for “a utopian vision of a share ownership system where there is only one type of owner’. This statement concerns share voting and taking back the stockholding infrastructure, according to an article published in cryptocoinnews.com.
“I want you, the institutional stockholders of America, to take back the voting and stockholding infrastructure of the U.S. securities markets.”, said Laster, while speaking to the online media.
The vice chancellor of Delaware Chancery Court thinks that the use of blockchain can cut down on the cost of money and mistakes, while granting transparency.
Blockchain Share Voting
In Octomber last year, the Abu Dhabi Securities Exchange (ADX) has developed an e-voting platform based on blockchain technology, as cryptocoinnews.com wrote earlier. The service can enable the shareholders to vote during their annual meetings. It claims to facilitate simpler and more effective voting process.
It remains to be seen whether blockchain technology will be more widely used as an alternative solution to problems such as the Dole case.