Changes to technology have greatly improved the way companies communicate. However, many states have yet to update their laws to allow for companies to take advantage of improving technology for formal corporate activities, including Board of Director actions. This is in contrast to stockholder meetings, where many states already allow for remote participation. If states uniformly update their laws to allow remote participation for Board of Director meetings, companies can run more efficiently and save money. Although there is a justifiable fear that a remotely participating director may not be as active a participant in the meeting, there is a system of checks and balances that stockholders can put in place to ensure directors uphold their duties to the company. If states do not enact laws expressly allowing for remote participation, they risk losing business to more technologically progressive states.
Aaron M. Esman,
Weighing Fiduciary Duties with 21st Century Realities ' Evaluating the Viability of Remote Participation for Boards of Directors,
Emory Corp. Governance & Accountability Rev.
Available at: https://scholarlycommons.law.emory.edu/ecgar/vol1/iss1/6