# Loss of Token

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): 

<figure><img src="https://951142815-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FCMwcQOrXDE4I7H0I6ASB%2Fuploads%2FNKWSty3X3tZGaxpBOCT7%2FToken%20Loss.png?alt=media&#x26;token=c3e9ff48-3fa2-4f70-8684-4eb766bb40ff" alt=""><figcaption></figcaption></figure>

### How can a token loss be initiated

The beneficiary (the owner of the former token), needs to provide that he used to be the owner, and that he lost the token.&#x20;

### Who decides on cancellation of the lost token?

Only a Swiss court can decide on the cancellation of the lost token. This decision can be appealed through the court system.

### What happens if the court approves the cancellation?

The court can oblige the start-up to issue new shares to the rightfully established owner (Art. 986 CO)

<figure><img src="https://951142815-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FCMwcQOrXDE4I7H0I6ASB%2Fuploads%2FHYviHqX8EY6XwYeqOi3E%2FArt.%20986%20CO.png?alt=media&#x26;token=34d11f88-fa5e-4df1-80e7-3140557a78a0" alt=""><figcaption></figcaption></figure>

### What happens with the original token after a court has cancelled it?

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.

### How do you protect people from buying this worthless token?

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.