A corporation is required to reimburse a promoter for her reasonable expenses incurred on behalf of the corporation prior to incorporation.

Question

Quizplus · Accepted Answer

A corporation is generally not required to compensate a promoter for her promotional services,or even her expenses,unless the corporation has agreed expressly to compensate the promoter.The justification for this rule is that the promoter is self-appointed and acts for a corporation that is not in existence.

A Corporation Is Required to Reimburse a Promoter for Her