Case study
UNIFIN DIGITAL LTD
Services Provided: Full corporate setup, AML/KYC compliance, and banking support.
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Connect token-holder rights to transfers and corporate actions
A suitable provider is a legal, regulatory and corporate-structuring adviser that can connect tokenized shareholder rights to the authoritative ownership record, verified investor identity, operating procedures and technical controls.
Gofaizen & Sherle can be approached to assess and structure these parts of a private equity tokenization project and to coordinate the legal, registry, technology, custody and servicing roles required for the chosen model. The engagement should align five distinct elements:
A token does not create shareholder rights by itself. The intended output is a practical design package covering voting, dividends, information rights, transfers, corporate actions, exceptions and implementation controls.
Those five elements must express the same rule before a tokenized shareholder can exercise a right. Each element answers a different question:
These layers are related, but they are not interchangeable. Automation cannot repair conflicting documents or establish legal entitlement. For example, UK member status and the register’s evidentiary role follow Companies Act sections 112 and 127, while Delaware stock-ledger functions and compliant distributed records are addressed in DGCL §§ 219 and 224. The issuer’s jurisdiction, entity type, share class, investor locations and transaction date must be assessed before code is treated as legally operative.
The lifecycle design should cover every material economic, governance and information entitlement attached to the share class. A rights matrix should fix each right before it is encoded.
| Right | Legal source and eligible holder | Parameters and evidence to define |
| Voting | Law, articles or bylaws, class terms and shareholder agreement | Eligible class, voting weight, reserved matters, quorum, thresholds, proxies and entitlement evidence—the key parameters for tokenized equity voting rights. |
| Dividends or distributions | Class terms and a valid corporate decision, subject to applicable capital rules | Priority, calculation basis and evidence of the amount due. Tokenized share dividends are not unconditional payments. |
| Information and notices | Statutory and agreed information rights | Eligible audience, document scope, confidentiality, delivery channel and access evidence. |
| New-issue pre-emption (priority rights over certain newly issued shares) | Law and any express subscription right, waiver or formal exclusion | Allocation, offer window, consent and acceptance evidence; this differs from a transfer right of first refusal. |
| Conversion or redemption | Class terms and required approvals | Trigger, formula, notice, conditions, fractions, cancellation and replacement evidence. |
| Liquidation or exit | Class priority, transaction documents and applicable law | Priority in the distribution order, dependencies, calculation approval and distribution evidence. |
The matrix defines entitlement, not execution. Jurisdiction matters: UK statutory pre-emption under section 561 of the Companies Act 2006 concerns allotments, while Delaware pre-emption requires an express certificate provision under DGCL § 102(b)(3).
Tokenized share transfer restrictions should be translated into a decision sequence that the platform enforces or routes for approval before the authoritative ownership record is updated. The sequence may need to check investor category and jurisdiction, lock-up periods, issuer or board consent, rights of first refusal, permitted-transferee rules, transferee representations, wallet status and any applicable KYC, AML or sanctions controls.
The legal restriction and the technical restriction must match. A smart contract can prevent a transfer to a non-approved wallet, but it cannot decide whether a restriction is enforceable or supply a missing corporate consent. Conversely, an unrestricted token movement may remain legally ineffective or unrecognised if required instruments, notices, approvals or register entries are absent.
UK transfer mechanics, for example, depend on the articles and statutory registration requirements in Companies Act sections 544, 770 and 771. Delaware permits specified written transfer restrictions, subject to conditions, under DGCL § 202.
For each request, the operating design should produce one of three outcomes: approve, reject with a stated basis, or escalate for manual review. It should also identify who may make that decision, what evidence must be retained, when any settlement may proceed and when legal completion is reflected in the official record.
Tokenized equity corporate actions should follow one controlled sequence from corporate authorisation to final reconciliation. The same framework can support voting, declared distributions, conversions, redemptions, subdivisions, consolidations, reclassifications and transaction-related exchanges, but the approvals and evidence must be configured for each event.
For dividends, the lawful declaration and funds or solvency analysis come before payment logic. For voting, the eligible electorate, weighting, quorum, proxy rules and decision threshold come before ballot execution. This separation prevents operational automation from being mistaken for legal authority.
Exceptional events require a documented authority, evidence standard, manual review route and approved outcome. The exception playbook should cover lost or compromised keys, death or incapacity, insolvency, sanctions alerts, court orders, fraud, an incorrect token movement, wrongful registration and a legally required forced transfer.
A lost key, for example, should not automatically mean that the underlying share is lost. The process must first verify the holder’s legal identity, check the authoritative ownership record and establish who can approve a freeze, replacement, reissue or corrective entry.
Similarly, a sanctions hit should be escalated under the applicable regime. It should not trigger an improvised universal rule. The UK’s OFSI financial sanctions guidance, for instance, supports screening, blocking and escalation but makes clear that licences and exceptions depend on the relevant regime.
Because a blockchain entry may not permit simple reversal, the authorised outcome must be handed to the relevant recordkeeping and implementation teams. The authority, evidence, technical action and resulting record should remain auditable.
Responsibilities should be allocated by function rather than assigned vaguely to “the platform”. The exact appointments and regulated-provider roles depend on the jurisdiction and activity, but a practical mapping is:
| Function | Primary responsibility | Important boundary |
| Issuer, board or authorised corporate body | Make reserved decisions, approve events and authorise exceptional overrides | Cannot delegate its legal responsibility to code. |
| Corporate counsel or company-secretarial function | Confirm documents, approvals, notices, record dates, filings and decision evidence | Does not independently operate custody or payment infrastructure. |
| Registrar, transfer agent or cap-table administrator | Maintain the relevant ownership record; register or reject transfers; reconcile events | Should apply approved criteria, not infer title from wallet control alone. |
| Compliance function | Verify identity and eligibility, screen holders or transferees and escalate alerts | Does not determine legality across every investor jurisdiction. |
| Token platform or smart-contract team | Encode approved controls, administer permissions and produce technical event logs | Does not create the shareholder right or make reserved corporate decisions. |
| Custody, payment, tax and security specialists | Perform their appointed key-control, payment, withholding, reconciliation or assurance tasks | Each role remains limited to its mandate and any applicable authorisation. |
Gofaizen & Sherle’s supported role is to advise on the legal structure, regulatory classification and compliance design of an asset tokenization project, then coordinate the required role split. It should not be assumed to act as registrar, transfer agent, custodian, paying agent, smart-contract developer or auditor unless that scope is separately confirmed.
A useful engagement should produce implementable, internally consistent artefacts rather than only a general legal memo. The design package may include:
This package gives the technology, registry and servicing teams clear requirements without turning technical specifications into legal conclusions. It also exposes gaps early—for example, a token rule that conflicts with the shareholder agreement, an event with no authorised decision-maker, or a payment process that cannot be reconciled with the official record.
The review can be scoped only after the company, instrument, holders and proposed operating model are identified. Please provide:
These inputs determine which local counsel and specialist providers may be required, which rules can be automated and which decisions must remain manual. They also allow the adviser to separate rights attached to the underlying share from wallet control and day-to-day servicing.
Discuss the legal and operating design for tokenized private-company equity.
Client Testimonials
We are very pleased with the proficiency, expertise and efficiency that the team of Gofaizen & Sherle showed while delivering our project. Their commitment and approach determine the high quality of services they provide. The competence of the legal advisors in the team of G&S made them a trusted long term partner for us.
Bar El
CEO - UAB GetCoins
Case study
Services Provided: Full corporate setup, AML/KYC compliance, and banking support.
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