DAO's the partnership problem

in #crypto-news5 years ago

I've mentioned before in other posts about the DAO being considered a partnership. Here is more detail on the problems "a general partnership, unless properly formalized or a deliberately created structure, is a very bad thing.

Among other things, the members of a general partnership can end up jointly and severally liable on a personal basis for partnership obligations."

"a big concern to a DAO creator or participant regardless. Lacking assets or a legal form, I expect that a court would see the entity that isn't really an entity as a fiction and could allow a lawsuit to proceed against the individual members."

"To sue an unincorporated DAO, you'd start with its members.

If you can't find members, you sue the DAO's first mover: the person or entity that first created the DAO.

And how do you avoid this? If you're creating a DAO, consider whether this evolutionary structure might benefit from some basic corporate structure, and whether doing so really limits the DAO's functionality in a meaningful fashion."

Find more details in the following:
http://www.coindesk.com/how-to-sue-a-decentralized-autonomous-organization/

Links to other DAO problem post mentioning partnerships:
https://steemit.com/crypto-news/@gavvet/more-potential-pain-for-dao-investors
https://steemit.com/crypto-news/@gavvet/bloomberg-view-on-dao

Then there is danthemans now classic post filled with real world DAC challenge experience:
https://steemit.com/crypto-news/@dan/is-the-dao-going-to-be-doa

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Take a look at this video "Understanding TheDAO with Griff Green"
They speak about the problems you list here.
https://plus.google.com/events/cm9m6fmqknd9ccj0lc7vhklm5tk