Shelf companies can be used by promoters to prevent contracts being binding by and against the company.

Name: Shelf companies can be used by promoters to prevent contracts being binding by and against the company.
Brand: Quizplus
Rating: 4.8 (58 reviews)

Question

Quizplus · Accepted Answer

Shelf companies are pre-registered companies with no activity, used for the convenience of having a ready-made legal entity; they do not inherently prevent contracts from being binding. Contracts are binding if entered into by authorized representatives of the company.

Shelf Companies Can Be Used by Promoters to Prevent Contracts