Explain the Promoters' Liability to Third Parties Before a Corporation

question 7

Essay

Explain the promoters' liability to third parties before a corporation is formed.

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Definitions:

Cease And Desist

A legal order or demand to halt alleged illegal activities.

Supreme Court

The highest judicial court in a country or state, often having the final authority in legal disputes and constitutional matters.

Insiders

Insiders are individuals within a company or organization that have access to confidential information, often affecting their ability to trade company stocks.

Corporate Information

Data or knowledge concerning the operations, policies, and management of a corporation, often considered proprietary or confidential.