Exploring legal structures

The WuppHouse as imagined is pretty unusual: a place that is free and autonomous like a squat but stable and secure like a legally owned house - perhaps we don't need to chose! There is no 'copy-paste' case for us to follow, so we may need to do a bit of investigative work ourselves.

***Text warning! This article follows on from a presentation which has some pretty pictures, look at that first.***

Working as an informal association of people has many disadvantages regarding the 'stability and security' of a shared property. In this case the ownership of the property is typically seen to be evenly shared between the individuals. This leads to issues when one person wants to sell the property to get some money! The other individuals typically have to 'buy' the share of the leaving individual or else sell the property to get the money to do so. The financial interest of an individual leading to harm against the collective can be avoided...

Working as a formal, incorporated association of people has many advantages regarding 'stability and security' of a shared property. By creating a set of rules in accordance with the law then registering with the state we can create a legal entity. A legal entity can be thought of a 'fake person', separate to any of the individuals but owned by them and able to own property, engage in contracts, fulfill obligations, etc. A legal entity can also be though of as a simple machine which acts only based on its set of rules.

A Genossenschaft is legal entity specifically established to benefit a purpose, it's members and the wider community. It has been developed in multiple countries over hundreds of years and has good things baked in, like users being members, each member having one share, thus one vote and thus an equal say and ownership in the running of the business. (It's an entity pretty much the opposite to those used by multinational corporations to funnel money.)

Contents

DE ↔ EN

  • Genossenschaft ↔ Cooperative
  • Wohnungsgenossenschaft ↔ Housing cooperative
  • Eingetragene Genossenschaft (eG oder e.G.) ↔ Registered/incorporated cooperative
  • Satzung ↔ Statute (Rules, Constitution, Governing document, etc)
  • Amstgericht ↔ District Court
  • Prüfungsverbände ↔ Audit association
  • Gesetz ↔ Law
  • Vorstand ↔ Board
  • Mitglieder ↔ Member
  • Stiftung ↔ Trust/Foundation

Creating a Genossenschaft 

These steps were extracted from a longer article. The Mietshäuser Syndikat International and Prüfungsverbände der Sozial- und Wirtschaftsgenossenschaften e.V. were contacted on 2016-08-24 by Douglas Webb to confirm the steps are accurate and whether there are any important omissions.

  1. Form a cohesive social group.
  2. Compose Satzung in accordance with the law.
  3. Get at least three founding members to agree to then sign the Satzung. 
  4. Pass signed Satzung onto a qualified Prüfungsverbände to check it.
  5. If signed Satzung is OK with with the Prüfungsverbände, contact an Amstgericht to register.
  6. If signed and verified Satzung is OK with the Amstergicht and registration proceeds, an eG is formed.

The Prüfungsverband normally takes money. Initially registering costs about 800-2000 Euros. Additionally, your Genossenschaft needs to be a member in one of those Prüfungsverband and they check you every 1-2 years. This costs additional 400-800 Euros. It is unclear for now if we could get this membership for free.

Source Law

Interpretation of Law and auxiliary info

Satzung for inspiration




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