Podcast
Questions and Answers
What is the primary role of a promoter in the formation of a company?
What is the primary role of a promoter in the formation of a company?
- To manage the day-to-day operations of the company
- To take the necessary steps to form a company and set it going (correct)
- To oversee the company's fiduciary duties to its stakeholders
- To ensure the company's financial stability after incorporation
What is the significance of the case Twycross v Grant (1877)?
What is the significance of the case Twycross v Grant (1877)?
- It introduced the concept of secret profits in company law
- It defined the role of a promoter in the formation of a company (correct)
- It established the promoter's fiduciary duty to the company
- It outlined the remedies available to the company for breach of fiduciary duty
What is the consequence of a promoter's breach of fiduciary duty?
What is the consequence of a promoter's breach of fiduciary duty?
- The company may report the promoter to the relevant regulatory authorities
- The promoter may be disqualified from promoting future companies
- The company may sue the promoter for damages and rescind the contract (correct)
- The promoter may be imprisoned for fraudulent activities
What is the primary difference between a promoter's role and a company's management?
What is the primary difference between a promoter's role and a company's management?
What is the basis of a promoter's fiduciary duty to the company?
What is the basis of a promoter's fiduciary duty to the company?
What is the significance of the phrase 'fiduciary duty' in the context of a promoter's role?
What is the significance of the phrase 'fiduciary duty' in the context of a promoter's role?
What is the relationship between a promoter and a company?
What is the relationship between a promoter and a company?
Why can't a company enter into a contract of employment with a promoter?
Why can't a company enter into a contract of employment with a promoter?
What can a company do to a promoter who has taken bribes or made a secret profit?
What can a company do to a promoter who has taken bribes or made a secret profit?
What is the provision in the Companies Act regarding pre-contractual benefits?
What is the provision in the Companies Act regarding pre-contractual benefits?
What is the consequence of a company being non-existent at the time a contract is made on its behalf?
What is the consequence of a company being non-existent at the time a contract is made on its behalf?
What is the consequence of a company ratifying a pre-incorporation contract?
What is the consequence of a company ratifying a pre-incorporation contract?
Flashcards are hidden until you start studying
