Corporate governance with blockchain-based shareholder voting system for Lithuania's Centre of Registers
Innovative blockchain-based shareholder voting system for the State Enterprise Centre of Registers (Registrų centras) in Lithuania leverages distributed ledger technology (DLT) to transform how Lithuanian companies conduct shareholder meetings, thus improving transparency, security, and efficiency in corporate governance processes.
Addressing an administrative challenge
The Centre of Registers, which maintains Lithuania's official business registry, processes approximately 800 shareholder meeting protocols daily—totaling over 200,000 annually—from more than 111,000 private limited liability companies and 260 public companies. The previous paper-based or PDF document submission process was labor-intensive, with each protocol taking 20 minutes to 2 hours to verify and register by the agency's 69 registrars.
"The traditional process of organizing shareholder meetings, voting, and submitting protocols was inefficient and vulnerable to potential manipulation," said Lilijana Medelytė, Innovation Expert at the Centre of Registers. "Companies struggled with manual vote counting and documentation, while our registrars spent excessive time verifying information. We needed a solution that would streamline this process while enhancing transparency and security."
DLT for corporate governance
AAI Labs' blockchain-based voting system addresses these challenges through several key innovations:
The system integrates with Lithuania's official business registry (JADIS) to verify shareholder identities and voting rights, ensuring only authorized participants can cast votes.
The platform guides companies through the shareholder meeting process according to legal requirements, ensuring all procedural steps are properly documented.
Votes are recorded on a blockchain, creating an immutable and independently verifiable record of all decisions.
The system automatically generates meeting protocols with standardized formatting and required information, eliminating manual drafting errors.
Completed protocols are securely submitted to the Centre of Registers in a structured digital format, enabling faster verification and registration.
Broader applications and future development
The blockchain voting solution has significant potential beyond its initial application. The architecture can be adapted for other voting contexts, including condominium associations, board meetings, political party assemblies, and other situations requiring secure, transparent voting processes.
"This implementation showcases how blockchain technology can solve real-world governance challenges," said Aistis Raudys, CEO of AAI Labs. "By digitizing and securing a critical corporate process, we help to build a more transparent, efficient business environment in Lithuania while creating a model that can be applied to many other democratic decision-making contexts."
About AAI Labs
AAI Labs is a leader in developing practical artificial intelligence and data analytics solutions for government and public sector organizations. The company specializes in creating secure, transparent, and effective systems that enhance decision-making and operational efficiency while maintaining the highest standards of data protection.