Dear Sir
First of all "Thank you for all the hardwork you have put in.. It really makes studying very easy and enjoyable."
I was going through the study kit of BPP (global variant). I need helo understanding a point regarding avoiding liability as a promoter.
" A common way to avoid the problem concerning pre-incorporation contracts is to buy a company 'off the shelf'."
Could you please explain this point?
Avoiding liability as a promoter for pre-incorporation contracts - Doubts
7y ago#1There are organisations (in the UK) that have an inventory of already-formed companies available for sale
So, instead of going through the process of establishing a company from scratch, it is possible to buy one of these pre-formed companies "from off the shelf"
The transaction of the purchase of one such company can be completed in (virtually) no time so there's no danger of entering into any pre-incorporation contracts (because the company is already incorporated)
Is that OK for you?
Yes.. Thankyou Mike... Crystal clear... :-)
7y ago#3You're welcome