Question

Multiple Choice Question:

Preliminary Contracts are signed

पर्याय

•  before the incorporation

• after incorporation but before the capital subscription

• after incorporation but before the commencement of business

• after the commencement of business

Answer 1

Preliminary contracts are signed between the promoters and the third party during the promotion of a company. As they are signed during the first stage of a company’s promotion, they are said to be signed before the incorporation of a company.

Hence, the correct answer is option before the incorporation.