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The article seems confused...the title references ownership and the abstract is not about ownership at all but about control of LLC’s and in a legal context own
by will_brown 9y ago
The article seems confused...the title references ownership and the abstract is not about ownership at all but about control of LLC’s and in a legal context ownership is distinct from control.
Otherwise the article is based on a false premises:
>Third, governments — particularly in the United States — lack the ability to determine who controls entities they charter
Take Florida. Florida’s Limited Liability Company Act regulates who can be a manager (i.e. who controls the LLC). In fact the act creates 2 types of LLCs as most states do, member managed and manager managed. In one non-members can not be managers (control) the LLC.
Outside of the LLC, almost every statute regulates who can control and who can own a business entity. For example, a non-profit corporation has no owners. Although states do differ, generally by statute, a non licensed person cannot be the owner of a professional service corporation, professional association, or professional limited liability company. Though generally those professional entities can have non-licensed directors, officers, or managers. State laws also generally include restriction on minors being directors, officers or managers, but they can usually be owners, although it gets tricky where they are the sole owner because legally they can’t even sign contracts/formation documentation (though still legally possible).
Point is Governments are well equipped to regulate who can own or who can control any type of business entity.
What is possible, and I have written legal articles about, is to have autonomous trusts, or what I call the trusteeless trust but my examples and use cases are limited to the trust being funded solely with cryptocurrencies/tokens.
- DennisP 9y agoWhere could I find your articles?
- slimsag 9y agoI would also like to read your articles. Would you be able to link me to them or edit your post and include links to them?
- owens99 9y ago> Point is Governments are well equipped to regulate who can own or who can control any type of business entity. Why do I get the feeling you are secretly an AI trying to trick us humans.
- toomim 9y agoThese are very good questions to ask. Thanks for raising them.
- deleted 9y ago[deleted]
- nickreese 9y agoInterested in reading your article as well.
- dfsegoat 9y ago> "What is possible, and I have written legal articles about, is to have autonomous trusts..." Link?
- will_brown 9y agoI can no longer edit my comment, but I have now read all 75 Pages, and the Article does in fact mention some of these issues, such as member-managed vs manager-managed LLCs and then in the "detection problem" section they discuss incorporators, directors, officers of corporations. Still the premises of the Article is flawed, and found in Section 1(b), Initiating Algorithmic Entities, on page 13, in part: >Bayern specifies this chain of events as capable of establishing the link: (1) [A]n individual member creates a member-managed LLC, filing the appropriate paperwork with the state; (2) the individual(along, possibly, with the LLC, which is controlled by the sole member) enters into an operating agreement governing the conduct of the LLC; (3) the operating agreement specifies that the LLC will take actions as determined by an autonomous system, specifying terms or conditions as appropriate to achieve the autonomous system’s legal goals; (4) the sole member withdraws from the LLC, leaving the LLC without any members. The result is potentially a perpetual LLC—a new legal person—that requires no ongoing intervention from any preexisting legal person in order to maintain its status. The premises is the last member (owner) withdrawing from the LLC leaving an AI to run the perpetual LLC, which is a legal impossibility. Every State has a law requiring an LLC have at least one member, and upon the withdraw of the last member of an LLC the LLC immediately becomes administratively dissolved (no longer in good standing with the State) under the State's law. Its not novel, similar laws govern situations when the sole member of an LLC dies, either the LLC automatically dissolves or ownership gets distributed to the member's heirs, pursuant to the specific State's laws, but the managers and/or employees don't go on running the member-less LLC whether they are human or an AI.
- Teever 9y agoI haven't had a chance to read this document yet but I was wondering what your thought of the utility of a Bearer Instrument in this situation? Are there any jurisdictions that allow incorporation to be represented by a Bearer Instrument? https://en.wikipedia.org/wiki/Bearer_instrument https://en.wikipedia.org/wiki/Bearer_instrument
- phkahler 9y agoWhat if the AI creates a fake identity? On a related note, what if we substitute a person on a remote connection to a computer instead of an AI? That seems far more dangerous and probably exists today.
- ralfd 9y ago> For example, a non-profit corporation has no owners. What happens if a non-profit dissolves?
- haZard_OS 9y agoThe exact outcome in such a scenario must be detailed in the Articles of Incorporation for said non-profit. The law forbids the officers/board from benefiting financially from their non-profit corporation's end, and so many Articles of Incorporation stipulate that, upon the demise of said non-profit corp., all assets and money shall be donated to some specific charity or non-commercial group.
- plebian79878 9y agowould also really like to read your articles. Was talking with someone just yesterday about autonomous trusts and cryptocurrencies