The blockchain intermediary, ARK, has announced it is setting up shop in France which means that it is now officially incorporated in the country as a cooperative society. The team behind ARK believes the governing structure of the cooperative will match the open source nature of its blockchain organization.
The project claims that the blockchain cooperative will be the first of its kind in the cryptosphere and offers the best hope for becoming a leading pioneer in the community as one of the first blockchain projects to incorporate in the European Union.
The chosen legal form of incorporation is known as the “Cooperative Society of Collective Interest” or SCIC for short. The ARK team announced that this form seems to satisfy most of the demands of this highly innovative sphere. SCIC is the French acronym for “General Interest Cooperatives,” defined under French law as a unique legal entity designed for multi-stakeholder co-operatives whose purpose is “production and provision of goods and services that are a matter of social utility.”
It is a new private, common interest co-operative that allows anyone to contribute to the legal framework and governance of an entity.
Being a SCIC members means that one becomes a shareholder. Every shareholder is equal in means of voting: 1 shareholder gets one vote under the SCIC framework. Still, they are devided into three statutory categories: Founders, Advisers and Employees.
How ARK Made Its Decision to Incorporate in France
The team behind ARK had been working a lot to create a legal entity, analyzing different options. France wasn’t the the top priority. Initially ARK made a try to fit the legal framework of Switzerland via the Swiss Foundation. Although the Swiss Foundation is a popular avenue for blockchain projects setting up legal entities, ARK ultimately turned to France’s SCIC framework.
Leveraging the SCIC incorporation process available in France, the team decided it would be able to accomplish almost every their aim in terms of such incorporation.
Its unique incorporation style will allow it to structure its governance based on an executive board of directors, while simultaneously giving each member of the community a word in decision making.
Despite its SCIC status, the ARK board of directors — except for founders and employees — can name additional shareholders. These new shareholders can also be appointed to the supervisory board, as provided for in the charter. The charter may be amended as often as necessary. That allows ARK to get the needed level of flexibility.
SCIC is required by French law to keep at least 52.5% of its profits as legal reserves — however, Ark found a way to buypass this rule: no amount of its produced profits will be distributed to shareholders. Instead, it will keep all profits in reserve for the further development, marketing and day-to-day operations.
Looking Ahead Towards the Future of ARK’s SCIC
The team believes ARK’s SCIC will bolster the reputation and credibility of cryptocurrency in the eyes of the French people, the European Union and possibly even the rest of the world.
During the incorporation process, ARK was invited by the Autorité des Marchés Financiers (AMF) — the French regulatory body for financial markets — and the Banque de France (National Bank of France) to present the ARK Project and explain the conditions of the ARK TEC. Its presentatiom was mostly focused on the best ways for innovative projects from the cryptosphere to comply with French laws, providing a transparent relationship with the country’s government.
ARK is now seen as a pioneer in the cryptocurrency adoption. The whole incorporating process will not only benefit the project. ARK is providing the companies of cryptosphere with a clear example of legalizing blockchain technology and creating a cryptho-friendly world