Dole Foods was involved in a 2013 lawsuit, which uncovered the company’s shares of its stock. It was found out that the company had excess of 12 milli
Dole Foods was involved in a 2013 lawsuit, which uncovered the company’s shares of its stock. It was found out that the company had excess of 12 million shares than it had earlier anticipated. This exposed a great weakness in the company’s overall market system.
David Murdock, who was then the Chairman, Chief executive Officer and majority shareholder, privatized the company for a value of $13.50 per share. This angered most of the shareholders claiming that Murdock had driven the value of the company down in order to purchase it at a cheaper price. The shareholders sued him and won the case.
At the time of the case, it was estimated that the company shares stood at 36,793,758, but the end figure was found to be 49,164,415 shares.
J. Travis Laster, The Vice Chancelor of Delaware Chancery court, was tasked to handle the Dole case. In his 17-page memorandum, the judge stated that blockchain technology was the ultimate solution to the problems facing Dole Company. Laster affirmed that the Blockchain initiative by Delaware State, encouraged Dole to experience the variation in stock figures.
Blockchain For Company’s Liberation
Laster, who is the advocate of Blockchain Technology, was quoted in October claiming that blockchain enhances an autopian vision of a share ownership system which allows only a single owner. This will greatly help to streamline the stockholding infrastructure and make share voting more efficient.
Laster points out that the current system is too ambiguous and outdated which makes it impossible to exactly ascertain the owner of a share and how it is evaluated and integrated in decision making.
Laster is of the belief that effective use of blockchain can substantially lower cost of money and minimize mistakes. This will bring transparency and give a piece of mind to those involved. If this strategy was initiated in Dole Food company, it would have eliminated all the mistakes and errors and prevent them from happening.
Blockchain to Facilitate Share Voting
Blockchain has been used in the past to effectively facilitate voting. This was seen in October when Abhu dhabi Securities Echange came up with an e-voting platform using the blockchain technology. This guaranteed all the shareholders of listed companies to participate and get a chance to exercise their voting rights during Annual. General Meetings. This type of solution might no longer apply to Dole Company, but could be used to prevent future mistakes and bring a lasting solution to all squabbles and misunderstandings experienced in the company.
With the rapid expansion of blockchain technology, it has benefited many companies and organizations by providing a practical alternative to problems faced by various companies. This has ensured complete transparency and facilitated success of most companies and organizations.