😑Loss of Token
Last updated
Last updated
A share is a membership right in a company. With tokenization, this right is validly attached to a token, and hence the token represents this membership right.
If a token gets lost this membership right is not destroyed: it is still included in the commercial registry. So how can the former owner still exercise his rights:
The membership right needs to be detached from the token.
Swiss law provides for such a detachment (Art. 973h CO):
The beneficiary (the owner of the former token), needs to provide that he used to be the owner, and that he lost the token.
Only a Swiss court can decide on the cancellation of the lost token. This decision can be appealed through the court system.
The court can oblige the start-up to issue new shares to the rightfully established owner (Art. 986 CO)
Nothing, we don't have any control over this token. However, this token does not any more represent a share, and the owner of this token does not have any rights against the company.
As the cancelled token has no rights, he has zero value. Nevertheless, there is a risk that people buy this token.
For this purpose we have included a function in the share contract which freezes the tokens in a specific wallet. This prevents people from buying worthless tokens.
