A promoter is a person who starts up a business, particularly a corporation, including the financing. The formation of a corporation starts with an idea. Preincorporation activities transform this idea into an actual corporation. The individual who carries on these preincorporation activities is called a promoter. Usually the promoter is the main shareholder or one of the management team and receives stock for his/her efforts in organization. Most states limit the amount of "promotional stock" since it is supported only by effort and not by assets or cash. If preincorporation contracts are executed by the promoter in his/her own name and there is no further action, the promoter is personally liable on them, and the corporation is not.
Under the Federal Securities Act of 1933, a pre-organization certificate or subscription is included in the definition of a security. Therefore, a contract to issue securities in the future is itself a contract for the sale of securities. In order to secure an exemption, all stock subscription agreements involving intrastate offerings should contain representations by the purchasers that they are bona fide residents of the state of which the issuer is a resident and that they are purchasing the securities for their own account and not with the view to reselling them to nonresidents. A stock transfer restriction running for a period of at least one year or for nine months after the last sale of the issue by the issuer is customarily included to insure that securities have not only been initially sold to residents, but have "come to rest" in the hands of residents.
The Puerto Rico Preincorporation Agreement between Incorporates and Promoters is a legal document that outlines the terms and conditions agreed upon by individuals or entities involved in the process of forming a corporation in Puerto Rico. This agreement serves as a preliminary contract and lays the foundation for the incorporation process. The key purpose of this agreement is to establish the roles, responsibilities, and relationships between the incorporates and promoters before the corporation is officially formed. It helps to ensure that all parties are on the same page and have a clear understanding of their obligations and expectations. Some relevant keywords related to the Puerto Rico Preincorporation Agreement between Incorporates and Promoters include: 1. Incorporation: The process of creating a legal entity, often a corporation, recognized by law as having its rights and liabilities separate from its members. 2. Promoters: Individuals or entities who take the initiative to organize and promote the formation of a corporation. 3. Incorporates: The persons or entities entering into the agreement to establish and operate the corporation. 4. Preliminary contract: A legally binding agreement that outlines the terms and conditions between the incorporates and promoters before the incorporation process is completed. 5. Roles and responsibilities: The specific duties and obligations of each party involved in the agreement. 6. Obligations: The commitments and responsibilities that each party agrees to undertake. 7. Expectations: The anticipated outcomes or results that the parties have for their involvement in the corporation. 8. Terms and conditions: The specific provisions and requirements that govern the relationship between the incorporates and promoters. 9. Puerto Rico: A self-governing territory of the United States located in the northeastern Caribbean Sea. 10. Corporation: A legal entity created to conduct business activities, characterized by limited liability for its shareholders and perpetual existence. There are no specific sub-types of the Puerto Rico Preincorporation Agreement between Incorporates and Promoters mentioned, as the agreement itself is a standardized document used to establish the framework for forming a corporation in Puerto Rico. However, variations may exist based on the unique requirements and considerations of individual corporations or specific industries.The Puerto Rico Preincorporation Agreement between Incorporates and Promoters is a legal document that outlines the terms and conditions agreed upon by individuals or entities involved in the process of forming a corporation in Puerto Rico. This agreement serves as a preliminary contract and lays the foundation for the incorporation process. The key purpose of this agreement is to establish the roles, responsibilities, and relationships between the incorporates and promoters before the corporation is officially formed. It helps to ensure that all parties are on the same page and have a clear understanding of their obligations and expectations. Some relevant keywords related to the Puerto Rico Preincorporation Agreement between Incorporates and Promoters include: 1. Incorporation: The process of creating a legal entity, often a corporation, recognized by law as having its rights and liabilities separate from its members. 2. Promoters: Individuals or entities who take the initiative to organize and promote the formation of a corporation. 3. Incorporates: The persons or entities entering into the agreement to establish and operate the corporation. 4. Preliminary contract: A legally binding agreement that outlines the terms and conditions between the incorporates and promoters before the incorporation process is completed. 5. Roles and responsibilities: The specific duties and obligations of each party involved in the agreement. 6. Obligations: The commitments and responsibilities that each party agrees to undertake. 7. Expectations: The anticipated outcomes or results that the parties have for their involvement in the corporation. 8. Terms and conditions: The specific provisions and requirements that govern the relationship between the incorporates and promoters. 9. Puerto Rico: A self-governing territory of the United States located in the northeastern Caribbean Sea. 10. Corporation: A legal entity created to conduct business activities, characterized by limited liability for its shareholders and perpetual existence. There are no specific sub-types of the Puerto Rico Preincorporation Agreement between Incorporates and Promoters mentioned, as the agreement itself is a standardized document used to establish the framework for forming a corporation in Puerto Rico. However, variations may exist based on the unique requirements and considerations of individual corporations or specific industries.
