Pre-Incorporation Period

Question 1

Promoter

Answer 1

Any person who directly or indirectly takes initiative to set up a corporation

Question 2

Fiduciary Duties of Promoters

Answer 2

Owe a fiduciary duty to other promoters and investors, must fully disclose and promote corporation’s interest and act in good faith.

Question 3

Liability

Answer 3

Any person who acts on behalf of a corporation KNOWING IT DOES NOT YET EXIST is personally liable for all debts incurred. If there is more than one person then joint and several liability applies