Decentralized Autonomous Corporations

The board mechanism is not an effective Corporate Governance method, because it relies on plurality voting and there are many problems with voting mechanisms. For example:

1- Violating the Independence of Irrelevant Alternatives (Because of the Impossibility Theorem)

2- Tyranny of the Majority or 51% Attack

3- Free Riding, which can result in the Tyranny of the Minority

As driver-less cars dominate the streets, driver-less corporations (DACs) may dominate Wall Street!

Can we require a of to mitigate the Tyranny of Majority?
Henderson Investment is an example that shows the unintended consequences of the supermajority rule.

Corporate Governance with the Board of Directors. Is it perfect?

Peter Drucker once said, “You can't manage what you can't measure."
Performance Measurement and Incentive Mechanisms are crucial parts of governance.

Shareholders elect the board members through voting, wherein the voting power is proportional to the number of shares. Then, the board monitors and controls the managers and executives.

Shareholders vote to elect the board members in the . And the board monitors and controls the executives and managers.

The separation of ownership and control has benefits, but it also creates agency problems. Therefore, we need corporate governance mechanisms to control and incentivize managers. But ....