What Section:
Corporate governance enhances the long-term value of the firm and its shareholders, as well as
recognizing the role of its various stakeholders. Throughout the video, I have learned that blockchain is a
technology that can provide smart solutions for typical corporate governance failures, such as lack of
board committees, management’s circumvention of internal controls, and making misrepresentation to
the board and auditors. It can substantially reduce the cost of shareholder’s voting and organization
costs for companies. Furthermore, blockchain can speed up decision-making and assist in fast and
efficient involvement of stockholders.
So What Section:
The agency theory which aims to optimize the contractual framework that directs the relationship
between directors and shareholders in corporate law is applicable to the discussion because the
decentralized autonomous organization or the DAO is a blockchain based organization that is completely
decentralized and therefore removes the agency problem and its agency costs. Blockchain would
revolutionize corporate governance through the restructuring of the old-fashioned Annual General
Meeting of Stockholders. It provides the possibility to build a decentralized peer-to-peer network and to
lessen the monitoring and bonding costs of companies by integrating and evaluating a blockchain based
AGM. The issues solved by the Blockchain AGM are lack of transparency, high transaction costs, and the
procedural flaws of remote voting system.
Now What Section:
If blockchain AGM will be introduced to the Philippines, I think that the two pressing arguments against
it will be the scalability and the consummation of too much energy. Philippines does not have a very
stable network connection so the process of transactions can become a bit slower if there are too many
users in the network. The complex algorithms used might not be so ideal for the country especially to