New Mexico Pre Incorporation Agreement
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'Any contract made in writing by a person professing to act as agent or trustee for a company not yet incorporated shall be capable of being ratified or adopted by or otherwise made binding upon and enforceable by such company after it has been duly incorporated as if it had been duly incorporated at the time when the ...
A shareholders' agreement is an agreement entered into between all or some of the shareholders in a company. It regulates the relationship between the shareholders, the management of the company, ownership of the shares and the protection of the shareholders. They also govern the way in which the company is run.
A shareholders' agreement is an instrument that sets out the limitation which the shareholders would want to control, as far as possible, in certain cases including but not limited to changes to the articles of association, alteration of share rights, increase or reduce the amount of share capital, etc.
In this case, the promoters of a hotel company entered into a pre-incorporation contract for the purchase of wine. Here, in this case, wine was consumed earlier and due to some reasons, the company went on liquidation. Another party to the contract sued the promoters for the non-payment of wine.
Purpose of shareholder agreement 1.2 The Shareholders are entering into this Shareholder Agreement to provide for the management and control of the affairs of the Corporation, including management of the business, division of profits, disposition of shares, and distribution of assets on liquidation.
There are various types of pre-incorporation contracts that can be made by a company ing to their need before incorporation, such as a lease agreement, employment agreement, founder's agreement, shareholder agreement, etc.