Asked by Carmen Stavole on Jun 18, 2024
Verified
What are the consequences of a defective incorporation?
Defective Incorporation
A situation where a company has not completed its incorporation process correctly resulting in potential legal and financial liabilities for its purported directors and shareholders.
- Analyze the legal implications of defective incorporations and personal liability issues related to corporate activities.
Verified Answer
BP
Birkamal PannuJun 20, 2024
Final Answer :
The possible consequences of a defective incorporation include the following:
(a) The state brings an action against the association for involuntary dissolution.
(b) The associates are held personally liable to a third party.
(c) The association asserts that it is not liable on an obligation; or
(d) A third party asserts that it is not liable to the association.
(a) The state brings an action against the association for involuntary dissolution.
(b) The associates are held personally liable to a third party.
(c) The association asserts that it is not liable on an obligation; or
(d) A third party asserts that it is not liable to the association.
Learning Objectives
- Analyze the legal implications of defective incorporations and personal liability issues related to corporate activities.
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