Shazia Ali Khan & Ahlam Masoodi, New Law College, Bharati Vidyapeeth, Pune
ABSTRACT
‘A theoretical approach to study a promoter’s liability to pre-incorporation contracts of a company.’
The term ‘company’ is defined as a legal entity created by a bunch of people to have interaction in and operate a business as an organization. A corporation is also organized in numerous ways whether for tax and money liability functions looking at the company law of its jurisdiction. As per the Companies Act, 2013, “Company” means a company incorporated under this Act or under any previous company law. Along these lines, before the proper wire of the association, the interaction of persons isn't believed to be an alternate legitimate component. In advance of the incorporation, it is necessary to vanguard the operations of the organization. Promoters are the individuals who will influence sufficient game plans with the purpose of ensuring the smooth start of the organization. Promoter organizes the resources needed to turn the concept into a business. The purpose of this research is to examine the relevance and enforceability of pre-incorporation contracts of an organization under Indian legislation, which is governed by the Indian Contract Act, 1872 in compliance with the Specific Relief Act, 1963. Following the theoretical study of promoter and pre-incorporation contracts, the further sections will manage the liability of promoters to pre-incorporation contracts of an organization. In addition to it, the present paper lays forth the terms under which the promoter and the risk of an organization are built up concerning the pre-consolidation terms of a contract. Ultimately, the entire of this research will finish up presenting a similar examination of the enforceability of pre-consolidation in India.
Keywords: Company, Companies Act 2013, Pre-incorporation contracts, Promoters.
