The promoter shall, until the formation of a company is complete and the working capital of the company has been raised, stand in a fiduciary relationship to the company:

• Observe utmost good faith towards the company in a transaction with the company or on behalf of the company.
• Compensate the company for any loss suffered by the company by reason of the failure of the promoter to observe utmost good faith.
• A promoter that acquires property or information in circumstances in which it was the duty of the promoter as a fiduciary to acquire the property or information on behalf of the company, shall account to the company for the property or information and for the profit which the promoter may have made from the use of that property or information.

(4 marks)