Promoters sometimes make contracts prior to the formation


Problem:

Promoters sometimes make contracts prior to the formation of a company. Explain the nature of a promoter's liability under section 131 of the Corporations Act.

Additional Information:

This question belongs to Law as well as it explains about the liabilities of promoters of company. It has been said in the question that promoters sometimes make contracts prior to the formation of company. This statement has been stated in detail in the solution.

Total Word Limit: 452 Words

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Business Law and Ethics: Promoters sometimes make contracts prior to the formation
Reference No:- TGS01105167

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