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GLOSSARY

Personal liability of promoter definition

Published by a LexisNexis Corporate expert

What does Personal liability of promoter mean?

A promoter is personally liable for a contract made by or on behalf of a company when the company has not been formed where the promoter purports to act for the company.

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51 Pre-incorporation contracts, deeds and obligations

(1) A contract that purports to be made by or on behalf of a company at a time when the company has not been formed has effect, subject to any agreement to the contrary, as one made with the person purporting to act for the company or as agent for it, and he is personally liable on the contract accordingly.(2) Subsection (1) applies— (a) to the making of a deed under the law of England and Wales or Northern Ireland, and(b) to the undertaking of an obligation under the law of Scotland,as

Personal liability of promoter is referenced 1 in UK Parliament Acts