We are working on the spec of a model DAC and would like to use this discussion title to solicit input.
Think of the project as drafting the standard bylaws for the DAC. We believe this is doable for the following reasons:
1. Communality: We have all incorporated companies be it C-Corps or Ltds and have been charged (quite a lot) by lawyers or (a bit less) by formation agents for a print-screen version of the bylaws which are 99% common across companies. We believe the DAC bylaws too can be 99% communal irrespective of what business you envisage for your company, as they typically deal with relationships between shareholders and governance issues.
2. "Legal Commons": We also believe this should be an open-source project and that nobody should be charged to use the model DAC bylaws.
3. Finally, we believe that in Ethereum, for the first time we may have the engineering tools to build and host DACs, so once fully specified we hope to find people within the community to help us code our bylaws.
We envisage the DAC as the successor to the limited company: a fully digital company with shares issued on the blockchain and embedded with its bylaws and governance code. The way we want to go about speccing the DAC is by way of a little mind game: if God were to create the perfect DAC, how would it look like?
In broad terms, it should be a separate legal entity of its founders and shareholders that "IPOs from day one", crowdfunds itself through digital currencies, governs itself through smart (we probably prefer to the word "wise") shares and whose accounts, as result of it transacting only in digital currencies, are up-to-date and public at all times.
As a result of its genesis, funding, governance and accounting, the DAC should serve as a "vehicle for human ingenuity" in which founders, investors, customers and collaborators can all participate to realise the business purpose for which the company was set up.
In a follow-up post we will break down each of the issues that need to be solved for a DAC to become a workable alternative to "real world" , jurisidiction-specific company forms. These issues range from majority rules and choice of forum to governance mechanisms and the winding-up of the DAC. Our goal is to draft a set of bylaws that can ship, i.a.w. not a theoretical concept but a genuine new company structure that can stand on its own feet and lead to wide adoption, not just within the community but by start-ups generally and even mature businesses.
There are lots of questions to be answered and we look forward to receiving comments and contributions.