Delaware LLCs and Partnerships Permitted to Use Blockchain Technology for Corporate Governance
In July 2018, Delaware amended Delaware Limited Liability Company Act (DLLCA) and the Delaware General Corporation Law (DGCL) (collectively, the Acts) to provide for the use of blockchain technology in the governance of LLCs and corporations formed under Delaware law, among other changes. The amendments became effective August 1, 2018.
The amendments to the DLLCA and the Delaware Revised Uniform Limited Partnership Act largely model the changes to the DGCL that provide statutory authority for corporations to keep records and provide notices to shareholders using blockchain technology. Under the new amendments, LLCs and LPs may also use networks of electronic databases to create and maintain records, affording partnerships the opportunity to take advantage of revolutionary technology with the power to optimize governance and management mechanisms.
For information, view our post on the changes to the DGCL that were effected in July 2017.