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.
Wake North Carolina Preincorporation Agreement between Incorporates and Promoters is a legally binding document that outlines the terms and conditions of incorporating a business in Wake, North Carolina. This agreement is typically entered into by the incorporates, who are individuals or entities seeking to establish a new business, and the promoters, who are responsible for facilitating the incorporation process. The Wake North Carolina Preincorporation Agreement between Incorporates and Promoters serves as a roadmap for the incorporates and promoters, ensuring that they are in sync regarding various aspects of the incorporation process. It helps in setting clear expectations and guidelines right from the beginning, minimizing the potential for conflicts or misunderstandings. Some key components covered in this agreement include: 1. Identification of Parties: The agreement contains detailed information about the incorporates and promoters involved. This includes their names, addresses, and contact details. 2. Purpose of Incorporation: The agreement specifies the purpose for which the business is being incorporated. This could include starting a new venture, expanding an existing enterprise, or other relevant objectives. 3. Roles and Responsibilities: The roles and responsibilities of the incorporates and promoters are clearly defined in the agreement. This ensures that every party understands their obligations and expectations. 4. Contribution of Assets: If the promoters are providing any assets or services to facilitate the incorporation process, this agreement outlines the details of such contributions. 5. Timelines and Deadlines: The agreement may include specific timelines and deadlines associated with the incorporation process. This ensures that all parties are aware of the timeframes and can plan accordingly. 6. Confidentiality and Non-Compete: To protect the interests of the parties involved, the agreement may include clauses related to confidentiality and non-compete. This prevents the disclosure of sensitive information and restricts the promoters from engaging in similar activities that could compete with the new business. 7. Liability and Indemnification: The agreement addresses issues of liability and indemnification, establishing the extent to which each party will be held responsible for any legal or financial consequences arising from the incorporation process. 8. Termination: Circumstances under which the agreement can be terminated are outlined in this section. This includes events such as a breach of contract, failure to fulfill obligations, or mutual agreement. It's important to note that while there may not be different types of Wake North Carolina Preincorporation Agreement between Incorporates and Promoters, the content and specific details of the agreement can be customized to suit the unique needs and requirements of the parties involved. In conclusion, the Wake North Carolina Preincorporation Agreement between Incorporates and Promoters is a crucial legal document that lays the foundation for a successful and harmonious incorporation process. It provides clarity and protection to all parties involved and helps streamline the process of establishing a new business in Wake, North Carolina.Wake North Carolina Preincorporation Agreement between Incorporates and Promoters is a legally binding document that outlines the terms and conditions of incorporating a business in Wake, North Carolina. This agreement is typically entered into by the incorporates, who are individuals or entities seeking to establish a new business, and the promoters, who are responsible for facilitating the incorporation process. The Wake North Carolina Preincorporation Agreement between Incorporates and Promoters serves as a roadmap for the incorporates and promoters, ensuring that they are in sync regarding various aspects of the incorporation process. It helps in setting clear expectations and guidelines right from the beginning, minimizing the potential for conflicts or misunderstandings. Some key components covered in this agreement include: 1. Identification of Parties: The agreement contains detailed information about the incorporates and promoters involved. This includes their names, addresses, and contact details. 2. Purpose of Incorporation: The agreement specifies the purpose for which the business is being incorporated. This could include starting a new venture, expanding an existing enterprise, or other relevant objectives. 3. Roles and Responsibilities: The roles and responsibilities of the incorporates and promoters are clearly defined in the agreement. This ensures that every party understands their obligations and expectations. 4. Contribution of Assets: If the promoters are providing any assets or services to facilitate the incorporation process, this agreement outlines the details of such contributions. 5. Timelines and Deadlines: The agreement may include specific timelines and deadlines associated with the incorporation process. This ensures that all parties are aware of the timeframes and can plan accordingly. 6. Confidentiality and Non-Compete: To protect the interests of the parties involved, the agreement may include clauses related to confidentiality and non-compete. This prevents the disclosure of sensitive information and restricts the promoters from engaging in similar activities that could compete with the new business. 7. Liability and Indemnification: The agreement addresses issues of liability and indemnification, establishing the extent to which each party will be held responsible for any legal or financial consequences arising from the incorporation process. 8. Termination: Circumstances under which the agreement can be terminated are outlined in this section. This includes events such as a breach of contract, failure to fulfill obligations, or mutual agreement. It's important to note that while there may not be different types of Wake North Carolina Preincorporation Agreement between Incorporates and Promoters, the content and specific details of the agreement can be customized to suit the unique needs and requirements of the parties involved. In conclusion, the Wake North Carolina Preincorporation Agreement between Incorporates and Promoters is a crucial legal document that lays the foundation for a successful and harmonious incorporation process. It provides clarity and protection to all parties involved and helps streamline the process of establishing a new business in Wake, North Carolina.
