payment to promoters a promoter has no legal


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.

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Business Law and Ethics: payment to promoters a promoter has no legal
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