| Summary: | Today's paper-based system regarding share certificates has long been considered obsolete in relation to the technical development that characterizes an otherwise digital market. Especially in relation to the inconveniences the system is associated with for limited liability companies, as well as for the shareholders. Despite it being a known fact, no changes have been made in cases where amendments to the law have been discussed through official government reports. The solutions presented in the reports have been either an implementation of a share register or an extended function of the share ledger, both requiring the abolishment of share certificates. The opinion yet remained that the positive aspects of the paper-based share certificate system overweighed the negative ones due to technological shortcomings. However, in light of recent development in modern technology, a solution might be found in blockchain technology. The overall question of this thesis is thus to what extent the paper-based system raises problems and whether satisfactory solutions can be found in new technology. In order to present effective and competitive solutions, the thesis looks beyond the national boarders, towards foreign judicial system to find alternative ways of handling the issue of share certificates. Through the international perspective, blockchain technology is presented as a potential solution. In order to assess its compatibility with the Swedish judicial system a short introduction is made regarding the underlying technology. This also helps create an understanding of its pioneering nature. The technical introduction is then followed by a theoretical application of a blockchain-based solution for handling the share certificates as well as the share ledger. This leads to the conclusion that a potential solution is found in blockchain technology which, combined with the overall assessment of the negative aspects of a paper-based system, advocates for a reform.
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