Can the legal status of a DAO be changed or modified over time?

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  • Germany


Basically, the members of a DAO can decide to change the legal status of the DAO at any
time. In order to do this, they must fulfill the specific requirements in accordance with the applicable laws. If the DAO does not qualify as a legal entity under civil law, from a legal point of view a new legal entity must be established. Accordingly, all civil and corporate law requirements that apply in this regard must be fulfilled. 

The same applies if the company form of the DAO is changed, e. g. if a civil law partnership
(Gesellschaft bürgerlichen Rechts – GbR) is transformed into a general partnership (offene
Handelsgesellschaft – OHG). In particular, registry obligations may be relevant. Apart from
these, further requirements may apply as well. 

Consequently, after having changed the legal status successfully, the DAO must observe the requirements that apply to its new legal status.

Zsofia Vig

Banking and Capital Markets Law (DeFi/Web3, Crypto in general, tokenized Securities)

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