What is a virtual share from a legal perspective?
Virtual share is an electronic record of a certain right of the recipient towards the issuer.
For most virtual shares supported by KOOS, it is the right to demand that the issuer makes a certain payment to the recipient if a certain event happens, or a certain date arrives. Correspondingly, it is an obligation of the issuer to meet the promise embedded within the virtual share. This legal relationship between the issuer and the recipients is defined in a document called “terms of virtual shares”. For some virtual shares (previously referred to as tokens), it may be a right to use certain content, product, or service.
Register of virtual shares and entitled recipients is kept by the issuer through KOOS.io platform. The rights represented by a virtual share are special – they can be exercised/enforced only by a person who has been registered in the register as the virtual shareholder. A virtual share is not an (actual) share issued by the issuer and virtual shareholders do not enjoy all the rights (actual) shareholders have (e.g., no voting rights).
Virtual shares grant only the benefits and rights as set out in the terms of the respective virtual share agreement.
Virtual Share Limitations