In the year of 2008, C wants to incorporate the company with name of “President Cheese” in which C will hold 1000 and the half share. The object of Company is to promote charity by giving cheese to poor children. C doesn’t want to have the word “Ltd” to be inserted to name of the Company.
C sends his application for incorporation to the Registrar of University of Technology. C does not want to have a Constitution for his company and also C wants to be the sole director of the company. Moreover, C wants the company to issue par value shares.
C has just learned that Zerox Co. Ltd is prosecuting his Company for non-respect of its contractual obligations under pre-incorporation contract which D, the promoter had signed in the name of C’s Company. The said pre -incorporation contract was never approved by C’s Company.
M, the director of Zimzam Co. Ltd, would wish to be briefly informed of following:
(i) Who is the promoter?
(ii) What are the duties of the promoter?
(iii) How to approve the pre-incorporation contract?
(iv) What are the effects of ratification?
Advise C and M correspondingly as per the legal issues which might arise; supporting your answer with the appropriate sections of law and case-law(s) if need be.