A Pre-Incorporation Contract may be considered for the mutual protection of prospective shareholders in the intended registration of a company still to be formed. The document sets out the intended purpose and structure of the company to be registered and endeavours to ensure that the prospective shareholders understand their respective rights and obligations in relation to each other.
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Summary A Pre-Incorporation Agreement may be considered for the mutual protection of prospective shareholders in the intended registration of a company. The document sets out the intended purpose and structure of the company to be registered and strives to ensure that the prospective shareholders understand their respective rights and obligations in relation to each other.
Why do I need a Pre Incorporation Agreement? If you intend to start a business through the registration of a company with fellow shareholders, a written Agreement may be considered for the negotiation and agreement of various terms of registration. This Pre Incorporation Contract, amongst other things strives to set out what is agreed between the prospective shareholders, respective responsibilities in the incorporation of the company, and generally agree on the terms of the incorporation. The document also identifies the person authorised to act for the company prior to registration.
What does the Pre-incorporation Contract say? The template terms consist of: Introduction; Incorporation; Shares; Management; Signing Authority; General; Signatures
What does the template contract look like? The agreement can be printed onto seven pages.
What do you need to do to use the Pre-incorporation Contract?
- Read the standard document to ensure that it suits your requirements. Complete the requisite sections, making changes as required.
- Ensure the prospective shareholders sign the contract with each prospective shareholder getting a copy of the final, signed agreement.
Note: When prospective shareholders register a company, a working knowledge of the Companies Act is important and a specialist’s advice is advised.
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