Topic: The legality of a company registered in the blockchain and ownership of IP - page 2. (Read 4113 times)

Goal:  To create a company recognized as its own legal entity in Common Law jurisdictions that would exist in bitcoin space as fully as possible.

Methods:

1. File the entity's Memorandum of Association in a Common Law jurisdiction.  The memorandum sets out the name of the company, and the authorized share capital, together with the subscribers (who become the first directors and shareholders of the company).

Associate an ECDSA public key with each each subscriber at the time of filling, along with a BIP32 "chain code" for the company.

2. Using the open-assets protocol (colored coins), create an amount of shares certificates equal to the Authorized Share Capital set out in the Memorandum of Association.  The colored coins should be issued using multisig techniques and the ECDSA keys linked to the subscribers in Step 1.  

3. Write the entity's Articles of Association, have each subscriber sign the document with the ECDSA public key associated to them in Step 1.  Embedded the hash of the Articles of Association along with the signatures into the bitcoin blockchain.  This document would also recognize the share certificates created in Step #2 and explicitly allow for their trading as specified by the open-assets protocol.  

4. (OPTIONAL) Write any necessary Shareholder's Agreements, have the shareholders sign it, and embedded the document's hash and the shareholders' signatures into the blockchain.  

Does this work?

It seems that everything except for Step #1 can be done in a p2p and decentralized manner.  The company would not require a bank account anywhere.  The company could still legally own IP such as patents, trademarks as well as other property, and there would be a public record of the subscribers filed in a Common Law jurisdiction (to reduce the fear of scams).  If a bigger company wanted to purchase the smaller company, and assuming the company's internal documentation and accounting was in order, there would be no bright red flags about the arrangement that would turn off the larger company.  

Yes?  No?  Comments?  Concerns?