There are several necessary steps in the creation of a corporation, partly because States consider corporations as "beings". If the steps are not followed correctly, the corporation does not come into existence. Promoters take the preliminary steps of organizing a corporation: issuing a prospectus and securing a charter. A promoter is personally liable on preincorporation contracts, even after incorporation unless the third party releases the promoter or the corporation assumes the contract by novation. How does the board of directors of a corporation absolve the promoter of liability?