Transparent Shareholder Voting
Distributed Ledger Technology / Case
AAI Labs is developing a modern solution for the State Enterprise Centre of Registers to improve the way shareholder voting is conducted with Distributed Ledger Technology (DLT).
The client asked to create a secure and efficient voting module that simplifies the voting process for shareholders while automating essential tasks such as quorum calculation, vote tracking, and meeting minutes generation.
Objectives
The primary objective of the project is to create a voting system that provides shareholders with a transparent and tamper-proof voting process during the meetings. The system shall ensure that all votes are securely recorded and tracked on a distributed ledger.
Another goal is to automate complex calculations such as quorum validation and vote counting. In traditional settings, these tasks are prone to human error, but with DLT, quorum and voting results can be verified in real-time.
Finally, the system will be designed to automatically generate meeting minutes based on the votes and decisions made. This will reduce administrative overhead and ensure that all records are formatted and documented according to nation-wide regulatory requirements.
Solution
The system will digitize the entire voting process, from participation validation to final decision recording, ensuring transparency and efficiency. By using DLT, the voting process becomes transparent and immutable, with each vote recorded in real-time on the ledger, creating an unalterable and fully auditable trail of transactions. This guarantees the security of votes, eliminates manipulation risks, and ensures regulatory compliance with a clear log of actions.
The system will have a user-friendly interface that will enable shareholders to cast votes using their digital identities, while seamless integration with existing shareholder databases will ensure participant verification and compatibility with legacy infrastructure.
Implementation phases
1. System design and DLT setup
First, the system architecture was established, with the DLT network configured to securely handle vote logging and quorum verification.
2. Prototype development
We are currently in the process of developing the prototype voting module. This includes the design of the voting interface and backend systems that manage the DLT and automation features. Additionally, we are conducting security tests to ensure that it meets the highest standards of data protection and regulatory compliance.
3. Integration and testing
Once the prototype is completed, the system will be integrated with shareholder databases and tested in live shareholder meetings. This initial phase will focus on validating the system’s ability to calculate quorums, track votes in real-time, and generate accurate protocols.
4. Scaling and full deployment
After successful testing, the system will be scaled to handle large-scale shareholder meetings across multiple companies and institutions.
Expected results
The deployment of this system is expected to improve the transparency, security, and efficiency of shareholder meetings. The system will reduce the time required for decision-making and eliminate the possibility of human error. Furthermore, the transparent nature of DLT will ensure that all voting actions are securely recorded.
Moreover, the automation of protocol generation will greatly reduce the administrative work on meeting organizers, allowing them to focus on other tasks. The improved process is projected to reduce the time required for protocol generation by 30%, while real-time vote counting could shorten the duration of meetings by up to 20%.
Future prospects
TheFurthermore, the flexible nature of the system makes it easily scalable and adaptable for different organizational needs and governance processes that require secure and transparent voting mechanisms. For example, governmental bodies, corporate boards, and even academic institutions could use the system to ensure simple and secure decision-making.
Client
State Enterprise Centre of Registers (Registrų centras)