Legal Analysis of Implication of Blockchain Technology in Corporate Governance

This research explores the inter-relationship and inter-dependent growth of Corporate Governance and Blockchain Technology. This new invention of Blockchain Technology to the Corporation is a massive opportunity store. The fast-growing Blockchain Technology has a sufficient reach to the basic principles of corporate governance. The present paper explains the shift in purpose of corporate governance from regulating corporations to build fiduciary, agency-management relationship & accountability. The Distributed Ledger Technology (DLT) system of Blockchain Technology has the potential to solve the problems associated with classical financial record keeping system. The Transfer Control Protocol transfers the information of asset. Likewise, the Blockchain Technology transfer the value of asset at the very low cost by removing some or all intermediaries. The major purpose of Corporate Governance can be achieved by applying the vital features of Blockchain Technology. While incorporating Blockchain Technology in structure of Corporate Governance, it is important to ascertain the legal issues arising out of the incorporation and have a specified legislation to solve any conflict. As the technology is in developing stage and it will take a lot of time to be fully grown, despite that fact, it cannot be left unregulated because that will make it hall of illegal transfer. So, basic as well as progressive legislation is the need of hour to provide legal certainty for firms & corporations dealing on Blockchain platform by securing the use of technology and backing the undesirable consequences. The current status of Blockchain regulatory framework is in a preliminary stage in India. The nature of society is Dynamic. Therefore, its inventions and laws can never hold a static value. This paper has attempted to provide adequate suggestions on Regulation based on the comparison of regulations in USA, the essence of the research lies in the process that how the Blockchain Technology will unfold benefits and restructure the Corporate Governance.