- 12 Marks
BL – May 2018 – L1 – SB – Q4a – Company Law
Discuss the liability of shareholders for transactions entered into prior to company incorporation.
Question
Beny Limited was incorporated six months ago. The company is in the real estate business. While preparing for incorporation, Ben and Nyom, who are now shareholders of the company, bought prime landed properties on behalf of the proposed company. They owe the vendors N100 million as the balance of the purchase price. The vendors are demanding payment.
Required:
(i) Advise Ben and Nyom on their status in the transaction. (4 Marks)
ii. Advise Beny Limited on the liability for the sum of N100 million
Find Related Questions by Tags, levels, etc.
- Tags: Company Law, Pre-incorporation Contract, Shareholder Liability
- Level: Level 1
- Topic: Company Law
- Series: MAY 2018
