Promoters

Define a promoter?

• a person who takes procedural steps to get a company incorporated which includes anyone who makes business preparation for company

• a person who acts as a professional in company formation such as a solicitor or an accountant

The definition of a promoter is stated under __ Act

• The Promoters Act

• The Companies Act

What are the main remedies open to a company for a breach of duty by promoter?
i) rescission

ii) damages

iii) recovery of secret profit

iv) rectification

• all of them

• I, II, and III

• II, III, IV

• I, III, IV

Are the following statements true?
A promoter usually incurs expenses in preparations, such as drafting legal documents, made before the company is formed. They have no automatic rights to recover these 'pre-incorporation expenses' from the company

• true

• false

A pre-incorporation contract is a contract purported to be made by a company or its agent at a time before the company has been formed

• true

• false

Farhan is the promoter of Peneraju Bhd. Before the company is incorporated, he enters into a contract purportedly on its behalf. After the notice of registration is issued, the contract is breached. Who is liable?

• Farhan

• Peneraju Bhd

Would Peneraju Bhd be able to ratify the contract under the Companies Act?

• Yes

• No

A company is formed under CA 2016 by a minimum of one person subscribing to the constitution, who comply with the requirements regarding registration by virtue of CA

• True

• False

The application for registration must be made and submitted to Registrar with other relevant documents such as the company's proposed name, the location of its registered office and whether the company is public or private

• True

• False

Must company have a constitution?

• No

• Yes

• Maybe