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.
Collin Texas Preincorporation Agreement between Incorporates and Promoters is a legal document that outlines the terms and conditions agreed upon by individuals involved in the process of incorporating a new business venture in Collin County, Texas. This agreement establishes the foundation for the business and ensures clarity and alignment among the incorporates and promoters. The Collin Texas Preincorporation Agreement between Incorporates and Promoters typically includes key provisions, such as: 1. Incorporated Information: This section identifies the names and addresses of all parties involved in the incorporation process, including the incorporates and the promoters. It may also specify their roles and responsibilities within the business. 2. Business Purpose: The agreement clearly identifies the purpose or nature of the business that the incorporates intend to establish in Collin County, Texas. It outlines the goals, objectives, and activities that the company will engage in. 3. Capital Contributions: This section discusses the initial capital contributions that each incorporated will make towards the business. It specifies the amount, form, and timing of these contributions. 4. Ownership Structure: The agreement outlines how ownership interests in the company will be distributed among the incorporates. It may include details such as the number of shares or percentages each individual will hold and any restrictions on transferring ownership. 5. Management Structure: This provision defines the management structure of the company, including the roles and responsibilities of the incorporates and any appointed officers or directors. It may also address decision-making processes, voting rights, and the appointment of key executives. 6. Intellectual Property: If applicable, the agreement may outline the ownership and use of intellectual property rights, trademarks, or patents associated with the business venture. 7. Confidentiality and Non-Compete: This section addresses the confidentiality of sensitive business information and may include non-compete clauses to protect the business's interests and prevent the incorporates from engaging in competitive activities during or after the incorporation process. 8. Dispute Resolution: The agreement may specify the methods and procedures for resolving disputes among the incorporates, such as mediation, arbitration, or litigation. It is worth noting that while the above provisions are common in Collin Texas Preincorporation Agreements between Incorporates and Promoters, the specific terms and details may vary depending on the nature of the business and the preferences of the parties involved. Regarding different types of Collin Texas Preincorporation Agreements between Incorporates and Promoters, there may not be distinct legal categories or classifications for such agreements. However, various businesses may customize the agreement based on their unique needs and circumstances, resulting in different versions or variations. These versions may emphasize specific provisions or address specific industry or business-specific requirements while maintaining the general structure and purpose of the agreement.Collin Texas Preincorporation Agreement between Incorporates and Promoters is a legal document that outlines the terms and conditions agreed upon by individuals involved in the process of incorporating a new business venture in Collin County, Texas. This agreement establishes the foundation for the business and ensures clarity and alignment among the incorporates and promoters. The Collin Texas Preincorporation Agreement between Incorporates and Promoters typically includes key provisions, such as: 1. Incorporated Information: This section identifies the names and addresses of all parties involved in the incorporation process, including the incorporates and the promoters. It may also specify their roles and responsibilities within the business. 2. Business Purpose: The agreement clearly identifies the purpose or nature of the business that the incorporates intend to establish in Collin County, Texas. It outlines the goals, objectives, and activities that the company will engage in. 3. Capital Contributions: This section discusses the initial capital contributions that each incorporated will make towards the business. It specifies the amount, form, and timing of these contributions. 4. Ownership Structure: The agreement outlines how ownership interests in the company will be distributed among the incorporates. It may include details such as the number of shares or percentages each individual will hold and any restrictions on transferring ownership. 5. Management Structure: This provision defines the management structure of the company, including the roles and responsibilities of the incorporates and any appointed officers or directors. It may also address decision-making processes, voting rights, and the appointment of key executives. 6. Intellectual Property: If applicable, the agreement may outline the ownership and use of intellectual property rights, trademarks, or patents associated with the business venture. 7. Confidentiality and Non-Compete: This section addresses the confidentiality of sensitive business information and may include non-compete clauses to protect the business's interests and prevent the incorporates from engaging in competitive activities during or after the incorporation process. 8. Dispute Resolution: The agreement may specify the methods and procedures for resolving disputes among the incorporates, such as mediation, arbitration, or litigation. It is worth noting that while the above provisions are common in Collin Texas Preincorporation Agreements between Incorporates and Promoters, the specific terms and details may vary depending on the nature of the business and the preferences of the parties involved. Regarding different types of Collin Texas Preincorporation Agreements between Incorporates and Promoters, there may not be distinct legal categories or classifications for such agreements. However, various businesses may customize the agreement based on their unique needs and circumstances, resulting in different versions or variations. These versions may emphasize specific provisions or address specific industry or business-specific requirements while maintaining the general structure and purpose of the agreement.
