# kaal:claim:3067615-019

**Claim.** Token holders, unlike shareholders in the traditional corporate infrastructure, cannot vote for or against directors or nominate directors, so ordinary ICO investors have no governance channel and simply must trust the promoters and their business intent.

**Type.** failure  **Support.** argued

**Holds when.**

- typical ICO token structures
- ordinary investors as distinct from institutional pre-sale investors

**Source quote.**

> Further limitations for token holders that amount to significant risk factors include token holders' inability, unlike shareholders in the traditional infrastructure, to vote for or against directors or to nominate directors.

**From.** Wulf A. Kaal, Marco Dell'Erba, *Initial Coin Offerings Emerging Practices, Risk Factors, and Red Flags* (2017), IV. Risk Factors, page 16

**Cite as.** Wulf A. Kaal, Marco Dell'Erba, Initial Coin Offerings Emerging Practices, Risk Factors, and Red Flags (2017). SSRN: https://ssrn.com/abstract=3067615

**Verify.** sha256 of source PDF `164ce15b9eb1e8847ebcb073f5b23a96b4974ad0308d77469a9455d4a1ebeb38` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Kaal%20and%20Dell%27Erba%20-%202017%20-%20Initial%20Coin%20Offerings%20Emerging%20Practices%2C%20Risk%20Factors%2C%20and%20Red%20Flags.pdf

**Failure mode.** Token holder governance void  (family: investor-protection-gap)

**Topics.** governance-design, corporate-governance, tokenomics

**Keywords.** corporate-governance, token-holder-rights, voting-rights, investor-protection

**Related claims.**

- restated_by: https://wulfkaal.github.io/claims/3117224-005
- extended_by: https://wulfkaal.github.io/claims/3117224-010

**Canonical form.** This markdown file is the canonical hashed representation of the claim. Its sha256 is the content hash used for attestation.