Question: How can a promoter avoid personal liability for pre-incorporation contracts?

How can a promoter avoid personal liability for pre-incorporation contracts?

Step by Step Solution

★★★★★

3.37 Rating (172 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

Some jurisdictions allow corporations once they or formed ... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Document Format (1 attachment)

Word file Icon

688-L-B-L-L-E (3684).docx

120 KBs Word File

Students Have Also Explored These Related Business Law Questions!

Q:

How may a director avoid personal liability when carrying out her corporate duties?

Q:

The partners who own Cohen Canoes Co. wished to avoid the unlimited personal liability of the partnership form of business, so they incorporated as Cohen Canoes Inc. The charter from the state of...

Q:

The partners who own Liard Canoes Co. wished to avoid the unlimited personal liability of the partnership form of business, so they incorporated as Liard Canoes, Inc. The charter from the state of...

Q:

What is meant by a corporation having a separate legal identity? Explain how the liability of a shareholder is limited. Explain under what circumstances a court will "lift the corporate veil." Why...

Q:

1. Explain how fraudulent, negligent, and innocent misrepresentations differ. Identify the remedies that are available for each type of misrepresentation. 2. Define frustration. List three ways in...

Q:

I need a well written student case brief including the following: Facts: statement of the facts of the case General Analysis: the legal principles used to decide the case, including the Issue and...

Q:

11) John is the promoter of Wheelies Corporation, an automotive wheel manufacturing business. To escape personal liability on preincorporation contracts, John planned to make only nonbinding...

Q:

John is the promoter of Wheelies Corporation, an automotive wheel manufacturing business. To escape personal liability on preincorporation contracts, John planned to make only nonbinding...

Q:

John is the promoter of Wheelies Corporation, an automotive wheel manufacturing business. To escape personal liability on preincorporation contracts, John planned to make only nonbinding...

Q:

John is the promoter of Wheelies Corporation, an automotive wheel manufacturing business. To escape personal liability on preincorporation contracts, John planned to make only nonbinding...

Q:

The stockholders equity section of Plaka Corporations balance sheet follows. Assuming one years dividend in arrears, determine the book value per share for both the preferred and the common stock....

Q:

When a sinusoidal wave crosses the boundary between two sections of cord as in Fig. 11-33 the frequency does not change (although the wavelength and velocity do change). Explain why.

Q:

how do I find when I will receive a margin call

Q:

Describe the main management development techniques.

Q:

Eden Electrical, Ltd., owned twenty-five appliance stores throughout Israel, at least some of which sold refrigerators made by Amana Co.Eden bought the appliances from Amanas Israeli distributor, Pan...

Q:

Richard Fraser was an exclusive career insurance agent under a contract with Nationwide Mutual Insurance Co. Fraser leased computer hardware and software from Nationwide for his business. During a...

Q:

Unable to pay more than $1.2 billion in debt, Big Rivers Electric Corp. filed a petition to declare bankruptcy in a federal bankruptcy court in September 1996. Big Rivers creditors included Bank of...

Q:

Find the Annual Recovery for Year 1 . Method = MACRS Purchased = Nov 0 5 Cost = 1 2 . 0 0 0 Recovery Class = 3 Annual Recovery for Year 1 =

Q:

Worthington Corporation has declared an annual dividend of $0.8 per share. For the year just ended, earnings were $8 per share. a. Worthington's payout ratio is ____________ percent. (Input answer as...

Q:

Given the following information, what is the variance of the returns on a portfolio that is invested 40 percent in both Stocks A and B, and 20 percent in Stock C? (probability of state occurring,...