Mickey and Minnie decide to form a company called Mouse Enterprises Pty Ltd (Mouse) to undertake a business selling a newly designed mouse trap. Before the company is registered, Mickey enters into a contract on behalf of Mouse with Cat Pty Ltd for the purchase of office supplies. Which of the following is incorrect:
A) If Mouse, or a company reasonably identifiable with it, is never registered, Mickey may be liable to Cat Pty Ltd for damages.
B) If Mouse was registered, Mickey and Minnie would both be regarded as promoters of Mouse.
C) If Mouse was registered and didn't ratify the contract with Cat Pty Ltd, both Minnie and Mouse could be liable to Cat Pty Ltd for damages under section 131 of Corporations Act 2001 (Cth) .
D) If Mouse was registered, it could ratify the contract by its directors passing a resolution.
E) None of the above as all the above are correct.
Correct Answer:
Verified
Q4: Pre-registration contracts can never be binding because
Q5: Passive promoters owe fiduciary duties to the
Q6: Shelf companies can be used by promoters
Q7: Homer and Marge decide to form a
Q8: Which of the following persons may be
Q10: Isaac decided to form a company to
Q11: Who is a 'promoter' of a company?
Q12: Who will not be regarded as a
Q13: What are a promoter's duties?
Q14: How should promoters make disclosure?
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents