Are there legal obstacles to implementing the Global Proxy Exchange?

No. the Global Proxy Exchange can be implemented today under existing US laws. The goal is to have the proxy exchange operate in every country that has an active equities market. Some countries' legal systems may pose a challenge for the proxy exchange, but we will address these on a country-by-country basis.

In the United States, shareholders have a right to appoint a proxy of their choosing. This was recognized as early as 1812 by Connecticut courts in Kilbourn vs. Tudor. Justice Ingersoll noted that, in any business, a person may appoint a representative "to act for him in his absence, in all matters relative to" the business. Legally, the Global Proxy Exchange will just be an organization available to serve as proxy for shareholders.

Transactions on the proxy exchange between beneficiaries, aggregators and voters will not be legal grants of proxy rights. Legally, these will be nothing more than private deliberations through which participants advise the proxy exchange on how to exercise the proxy rights it legally holds on their behalf.

At some point, there may be legal challenges from parties with a vested interest in the existing system of managerial capitalism. These may take time and considerable money to defend, but there is every reason to expect the proxy exchange to prevail on substantive issues.