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Commonly Asked Questions about Pre-Incorporation Agreement Forms

It can outline the management structure as well as set the terms for who will exercise control over the company before the initial corporate meeting is held. The agreement grants authority to the corporations incorporators prior to the corporation coming into existence.
pre​in​cor​po​ra​tion ˌprē-in-ˌkȯr-pə-ˈrā-shən. variants or pre-incorporation. : existing or occurring before the formation of a corporation. the preincorporation period/process.
A promoters contract is when a promoter becomes a part of a contract as a representative of a corporation to be formed. The promoter is considered to be liable to fulfil the obligations of the corporation. It happens in case the corporation is not formed or does not adopt the contract.
Pre-incorporation agreements, also known as promoters agreements, outline a corporations operations, responsibilities, and ownership before it is formally established. This type of agreement is usually made between the individuals (often referred to as promoters) involved in setting up the corporation.
Pre-Incorporation Period Profits of a Company The period before incorporation is the pre-incorporation period of the company, and the period after its incorporation is the post-incorporation period of the company.
A Pre-Incorporation contract is not binding unless the company adopts the contract. A provisional contract becomes binding on the company when it obtains the certificate of commencement.
A Pre-Incorporation Contract is entered into when the company is in the process of being incorporated but is not yet completed. In legality, such contracts are held to be void since the company is not yet in existence. A corporation represents a distinct legal entity, distinct from an individual, recognized by the law.
The person entering into the agreement has the intention that once the company comes into existence the company is to be bound by the provisions of the pre-incorporation contract. The only formal requirement for the conclusion of a pre-incorporation contract is that it must be reduced to writing.