Payment to promoters, Business Law and Ethics

Assignment Help:

Payment to Promoters:

  A promoter has no legal right against the company he promotes. The main reason is that the company did not ask him to promote it, and because the company could not make a valid contract with him before its incorporation.

In the case of companies which have adopted Table A,  Article 80 empowers the directors to pay promoters their promotion expenses. It is however a power given to the directors and confers no legal rights on the promoter.


Related Discussions:- Payment to promoters

Contractual capacity of persons of unsound mind, Contractual Capacity of Pe...

Contractual Capacity of Persons of Unsound Mind Furthermore a contract entered into through a person of unsound mind is voidable on his option whether it is proved that the ot

Define the term business ethics and social responsibility, Question 1: ...

Question 1: As a potential investment company you have been asked to brief your potential business partner about the most important steps required for the setting up of a hosp

Remuneration - powers of managing director, Remuneration:             ...

Remuneration:             Article 108 provides that "a managing director shall receive such remuneration (whether by way of salary plus commission or may participation in earn

The restrictions imposed on locally incorporated banks, QUESTION (a) Th...

QUESTION (a) The new Guideline on Corporate Governance relates to the processes and structures that should be put in place in order to direct and manage the business and affair

Pooling of assets and liabilities, Q. Pooling of assets and liabilities? ...

Q. Pooling of assets and liabilities? In 2004 the Corporations and Markets Advisory Committee proposed that assets and liabilities of companies be aggregated and creditors paid

Show the criminal conduct definition of phoenix activity, Q. Show the Crimi...

Q. Show the Criminal conduct definition of phoenix activity? Master Builders argued that the definition of phoenix activity should focus on the existing sections of corporation

Right to sell - terms used in contract, Right to sell - Terms used in Contr...

Right to sell - Terms used in Contract With S.14 (a) provides that there is an implied condition such seller has a right for sell the goods and, like in the case of an agreeme

Decisions for operating a business, When operating a business, an owner has...

When operating a business, an owner has to make numerous decisions on a daily basis. In some cases, a decision may increase profits, but the owner is uncomfortable making such a de

What are the features of the omc process, What are the features of the OMC ...

What are the features of the OMC process Participation is also seen as a central feature of the OMC process, especially if it is to be extended beyond 'top-down' to encompass '

Explain abraham maslow''s hierarchy of needs, Question 1 Mention any ten r...

Question 1 Mention any ten recommendations made by the Honey report Question 2 Explain the following Staff and line Span of Control Question 3 Explain A

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd