. A promoter: A. may have liability on the contracts
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A. may have liability on the contracts he negotiates on behalf of the prospective
B. does not hold any liability to third parties on preincorporation contracts.
C. automatically becomes one of the initial directors of the corporation.
D. is not liable on a preincorporation contract after the corporation's adoption of
Because the articles of incorporation embody the basic contract between a
corporation and its shareholders, shareholders must approve most changes in the
articles. Which of the following is an example of "such changes" in the article?
A. Place of shareholder meeting
B. Increase in the number of authorized shares
C. Amount of annual dividend
D. Date of shareholder meeting
voting permits a holder of more than 50 percent of the shares of a
corporation to dominate the corporation.
1. Answer: D is not liable on a pre- incorporation contract after the corporation adoption o…View the full answer