Voting Rights and Corporate Actions

Tokenized Equities · Lesson 2.4

Two things happen to a share after it is issued. Shareholders may be asked to vote, and corporate actions can change the share itself: dividends, stock splits, tender offers, mergers and buybacks. For token holders, both depend on the issuer or custodian passing information through, collecting holders' choices and updating the token. None of this happens automatically onchain. Some issuers handle votes and corporate actions well. Others pass through votes or dividends but have no clear process for a merger or a tender offer, which can leave token holders waiting while shareholders act.

Wally’s note: merger day. token holders: still waiting.

A voting feature is easy to advertise. Ask how the issuer will handle the next dividend, split or merger.

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