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 Kings New York Preincorporation Agreement between Incorporates and Promoters is a legal document specifically designed to outline the rights and responsibilities of both the incorporates and promoters involved in the process of starting a new business in the state of New York. This agreement serves as a foundation for the future incorporation of the business and helps establish a clear understanding between the parties involved. Keywords: Kings New York, Preincorporation Agreement, Incorporates, Promoters, legal document, rights and responsibilities, new business, incorporation, state of New York, clear understanding. There are several types of Kings New York Preincorporation Agreement between Incorporates and Promoters that may exist, catering to the specific needs and circumstances of each business venture. Some common types include: 1. Basic Preincorporation Agreement: This type of agreement establishes the key principles and terms that govern the relationship between the incorporates and promoters in the preincorporation phase. It may include provisions related to the division of responsibilities, capital contributions, intellectual property rights, and confidentiality. 2. Capital Preincorporation Agreement: This agreement focuses on outlining the financial aspects of the business venture, such as the amount and structure of capital investments made by each incorporated or promoter, the distribution of profits, and any potential investment returns. 3. Intellectual Property Preincorporation Agreement: For businesses heavily reliant on intellectual property, this agreement specifically addresses ownership, rights, and usage of any patents, trademarks, copyrights or other intellectual property assets associated with the business. It may also include provisions related to the transfer or licensing of such assets. 4. Non-Disclosure and Non-Compete Preincorporation Agreement: This type of agreement is designed to protect the confidentiality of sensitive information and to prevent incorporates or promoters from engaging in activities that may compete with the potential business being formed. It commonly includes provisions related to non-disclosure of trade secrets, non-compete clauses, and confidentiality obligations. It's important to note that the specific content and structure of Kings New York Preincorporation Agreement between Incorporates and Promoters may vary based on the unique requirements and characteristics of each business venture. Consulting a legal professional is advisable to ensure compliance with relevant laws and to tailor the agreement to best meet the needs of the specific situation.The Kings New York Preincorporation Agreement between Incorporates and Promoters is a legal document specifically designed to outline the rights and responsibilities of both the incorporates and promoters involved in the process of starting a new business in the state of New York. This agreement serves as a foundation for the future incorporation of the business and helps establish a clear understanding between the parties involved. Keywords: Kings New York, Preincorporation Agreement, Incorporates, Promoters, legal document, rights and responsibilities, new business, incorporation, state of New York, clear understanding. There are several types of Kings New York Preincorporation Agreement between Incorporates and Promoters that may exist, catering to the specific needs and circumstances of each business venture. Some common types include: 1. Basic Preincorporation Agreement: This type of agreement establishes the key principles and terms that govern the relationship between the incorporates and promoters in the preincorporation phase. It may include provisions related to the division of responsibilities, capital contributions, intellectual property rights, and confidentiality. 2. Capital Preincorporation Agreement: This agreement focuses on outlining the financial aspects of the business venture, such as the amount and structure of capital investments made by each incorporated or promoter, the distribution of profits, and any potential investment returns. 3. Intellectual Property Preincorporation Agreement: For businesses heavily reliant on intellectual property, this agreement specifically addresses ownership, rights, and usage of any patents, trademarks, copyrights or other intellectual property assets associated with the business. It may also include provisions related to the transfer or licensing of such assets. 4. Non-Disclosure and Non-Compete Preincorporation Agreement: This type of agreement is designed to protect the confidentiality of sensitive information and to prevent incorporates or promoters from engaging in activities that may compete with the potential business being formed. It commonly includes provisions related to non-disclosure of trade secrets, non-compete clauses, and confidentiality obligations. It's important to note that the specific content and structure of Kings New York Preincorporation Agreement between Incorporates and Promoters may vary based on the unique requirements and characteristics of each business venture. Consulting a legal professional is advisable to ensure compliance with relevant laws and to tailor the agreement to best meet the needs of the specific situation.
