What is the best way of ensuring that a promoter has no liability on contracts made by
What is the best way of ensuring that a promoter has no liability on contracts made by him/her with third parties on behalf of a corporation?
Ensure that the contracts have a novation clause.
Make the corporations adopt the contracts.
Make contracts only for existing corporations.
Ensure that the contracts have an automatic novation clause.
ZYX Corp. issues preferred shares that it has the option to repurchase at a particular price regardless of whether the shareholder is willing to sell the shares. Which of the following is attached to the sale of the securities by ZYX?
Right of first refusal
Redemption or call provision
Automatic novation clause