Lecture 7 - Promoters,pre Promoters,pre incorporation...

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Promoters, pre- Promoters, pre- incorporation &  incorporation &  provisional contracts provisional contracts Reading Promoters & pre-incorporation  contracts  Text ch 6
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Promoters Promoters Who is a promoter? Promoter’s fiduciary duties
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Who is a promoter? Who is a promoter? common law definition Tracy v Mandalay Tengku Abdullah ibni Sultan  Abu Bakar v Mohd Latiff Twycross v Grant     A  promoter,  I  apprehend,  is  one  who  undertakes  to  form  a  company  with  reference to a given  project, and to set  it  going,  and  who  takes  the  necessary  steps to accomplish that purpose  active/inactive professionals?
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Fiduciary duties of  Fiduciary duties of  promoters promoters act in coys interests avoid conflict of interests undisclosed interest in contracts
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Unformatted text preview: undisclosed profits ◆ corporate opportunities ◆ disclosure to whom? ◆ when do duties cease? ◆ consequences for breach of duties ◆ Fairview Schools Bhd v Indrani Rajaratnam Pre-incorporation Pre-incorporation contracts contracts ◆ common law position ◆ under s 35 Common law position Common law position ◆ company not liable ◆ ratification not possible ◆ promoter not liable ◆ Kelner v Baxter ◆ Black v Smallwood ◆ Ahmad bin Salleh v Rawang Hills Resort ◆ Cosmic Insurane Corp. v Khoo Chiang Poh ◆ The Golf Cheque Book Sdn Bhs v Nilai Springs Bhd. Under s 35 Under s 35 ◆ ratification permitted ◆ s 35(1) ◆ liability prior to ratification ◆ s 35(2) Bay v Illawarra Stationery Supplies Pty Ltd...
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