Pre-incorporation Contracts And The Promoter

State:
Utah
Control #:
UT-00INCA
Format:
Word; 
Rich Text
Instant download

Description

This package of forms contains a pre-incorporation agreement for the formers of a corporation to sign agreeing on how the corporate will be operated, who will be elected as officers and directors, salaries and many other corporate matters.


The Shareholders Agreement is signed by the shareholders to agree on how the shares of a deceased shareholder may be purchased and how shares of a person who desires to sell their stock may be obtained by the other shareholders or the corporation. Restrictions on the Sale of stock are included to accomplish the goals of the shareholders to keep the corporation under the control of the existing shareholders.


The Confidentiality Agreement is made between the shareholders wherein they agree to keep confidential certain corporate matters.

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FAQ

Promoters are generally held personally liable for pre-incorporation contract. If a company does not ratify or adopt a pre-incorporation contract under the Specific Relief Act, then the common law principle would be applicable and the promoter will be liable for breach of contract.

A corporate promoter is a firm or person who does the preliminary work related to the formation of a company, including its promotion, incorporation, and flotation, and solicits people to invest money in the company, usually when it is being formed.

Definition of Company PromoterA person who has been named as such in a prospectus or is identified by the company in the annual return in section 92; or. A person who has control over the affairs of the company, directly or indirectly whether as a shareholder, director or otherwise; or.

The promoter is obligated to bring the company in the legal existence and to ensure its successful running,; and in order to accomplish his obligation he may enter into some contract on behalf of prospective company. These types of contract are called 'Pre-incorporation Contract'.

Conclusion. The promoter is obligated to bring the company into the legal existence and to ensure its successful running, and in order to accomplish his obligation, he may enter into some contract on behalf of the prospective company. These types of contract are called 'Pre-incorporation Contract'.

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DISCUSS WHETHER PRE-INCORPORATION CONTRACTS ARE LEGALLY ENFORCEABLE OR NOT? PROMOTERS There must be promoters to set up a business.As a deemed principal the promoter could breach or repudiate the contract prior to the company ratifying it. Pre-incorporation contracts. Prior to incorporation being completed, the promoters of the unformed company will likely need to.

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Pre-incorporation Contracts And The Promoter