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corporate laws

Rohit Sahoo (75 Points)

17 October 2018

consequences for pre-incoration contract?
and who is liable?

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sanjith kotni (Articled assistant) (663 Points)
Replied 17 October 2018

promoters should act in ttust and accountable to the company for all gains earned in pre incorporation contract.Company may agree to reimburse them for all expenses incurred in GOOD FAITH by those promoters or directors .It's upto the company whether to held itslef a party liable for all pre incorporation contracts and there is no obligation on part of company to step into the shoes of promoters

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Bhanu (hyderabad) (1651 Points)
Replied 17 October 2018

if company after incorporation ,agrees to incorporate preincorporation contracts then company itself is liable
if not agreed ,then promotors are liable

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