Promoter Liability - Explained
Promoters Bring the Corporation into Existence
- Marketing, Advertising, Sales & PR
- Accounting, Taxation, and Reporting
- Professionalism & Career Development
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Law, Transactions, & Risk Management
Government, Legal System, Administrative Law, & Constitutional Law Legal Disputes - Civil & Criminal Law Agency Law HR, Employment, Labor, & Discrimination Business Entities, Corporate Governance & Ownership Business Transactions, Antitrust, & Securities Law Real Estate, Personal, & Intellectual Property Commercial Law: Contract, Payments, Security Interests, & Bankruptcy Consumer Protection Insurance & Risk Management Immigration Law Environmental Protection Law Inheritance, Estates, and Trusts
- Business Management & Operations
- Economics, Finance, & Analytics
- Courses
What is promoter liability?
A promoter of a corporation is the individual arranging contracts for or on behalf of the corporation. This includes entering into subscription agreements for the sale of securities to shareholders. The promoter is liable for these contracts until or unless the corporation ratifies and adopts the promoters activity. In such case, the corporation agrees to hold the promoter harmless for any potential liability from her actions as promoter.
Back To: BUSINESS ENTITIES, CORPORATE GOVERNANCE, & OWNERSHIP
Related Topics
- Holistic (Detailed) Overview of Setting Up a Business Entity
- Where to Form a Business
- Incorporating in Delaware
- Forming an LLC in Nevada or Wyoming
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