On Thursday, Delaware state senators introduced two bills, which propose that limited partnerships and limited liability companies (LLCs) be allowed to use blockchain technology for record keeping and record management, as well as certain ‘electronic transmissions.’ Both bills were assigned to the Banking, Business & Insurance Committee.
On April 26, 2018, the Delaware Senate introduced SB182 and SB183, two bills that could allow limited partnerships and limited liability companies (LLCs) to utilize blockchain technology. SB182 proposes amendments to Chapter 17 of Title 6 in the Delaware Code, which pertains to limited partnerships, while SB183 proposes amendments to Chapter 18, which pertains to LLCs.
Limited Partnerships
A synopsis of SB182 explains the potential blockchain-relevant amendments:
“Sections 2 and 4 through 6. These sections amend Sections 17-104(g), 17-302(e), 17-305(c) and 17-405(d) of the [Delaware Revised Uniform Limited Partnership] Act to provide specific statutory authority for Delaware limited partnerships to use networks of electronic databases (examples of which are described currently as ‘distributed ledgers’ or a ‘blockchain’) for the creation and maintenance of limited partnership records and for certain ‘electronic transmissions.'”
LLCs
A synopsis of SB183 explains similar proposed amendments for LLCs:
“Section 6. This section amends Section 18-104(g) of the [Delaware Limited Liability Company ] Act to provide specific statutory authority for domestic limited liability companies to use networks of electronic databases (examples of which are described currently as ‘distributed ledgers’ or a ‘blockchain’) for the creation and maintenance of limited lability company records and for certain ‘electronic transmissions.'”
The prospective blockchain-related changes continue:
“Sections 25 through 27. These sections amend Sections 18-302(d), 18-305(d) and 18-404(d) of the Act to provide specific statutory authority for domestic limited liability companies to use networks of electronic databases (examples of which are described currently as ‘distributed ledgers’ or a ‘blockchain’) for the creation and maintenance of limited lability company records and for certain ‘electronic transmissions.'”
Previous Pro-Blockchain Legislation
In July 2017, ETHNews reported on amendments to the Delaware General Corporation Law, which paved the way for blockchain-based share issuance and management. A similar bill (HB101) has been passed by the Wyoming House and Senate, but has not yet been signed into law.
Matthew is a writer with a passion for emerging technology. Prior to joining ETHNews, he interned for the U.S. Securities and Exchange Commission as well as the OECD. He graduated cum laude from Georgetown University where he studied international economics. In his spare time, Matthew loves playing basketball and listening to podcasts. He currently lives in Los Angeles. Matthew is a full-time staff writer for ETHNews.
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