Answer to Question #257601 in Law for TRIZ

Question

Zuri and his friends (promoters) have submitted an application to the Registrar of Companies for getting a company incorporated as a public company. Pending the Registrar’s decision of granting certificate of incorporation, the promoters enter into certain contracts for the purchase of some assets for the proposed company. Explain the legal position of promoters’ liability and the liability of the proposed company after its incorporation, in this regard. (15 marks)

Answer 1

Registrar's decision of granting certificate of incorporation, the promoters enter into certain. contracts for the purchase of some assets proposed company. Incorporating a business means turning an unincorporated business. Promoter Meaning of Promoter A promoter is a generic term associated with the person who starts a business. In common parlance, this person is also referred to as the founder of the business. Thus, a promoter typically is responsible for raising capital,