Question

Scenario: Abdul and four friends wish to come together to form a new company. They will need a large warehouse to store their product. They propose to name the company SoftClean Pty Ltd. Abdul will coordinate initial formalities, chase registration of the company and find a Suitable warehouse that the company can use for storage. The friends each promised to contribute $50,000 individually for the new company tosiards share capital. Abdul instructs a solictor to prepare the necessary documents for the new company. He finds a warehouse and agrees on a two year lease. He gets a web designer to build a website for online sales. After two weeks, none of the friends have paid the $50,000. Two are now considering puttng the money elsewhere as they are not sure that SoftiClean will be profitable but have not informed Abdul. They have done nothing in regard to the proposed company. The solicitor has now presented a bill for the work. The landlord has an invoice for the first quarter of the year. The web designer has also asked for a payment The company is yet to be registered at it now does not seem likely that it will be registered. Abdul is now very worried. PART C MAbdul does register the company, will that mean he is no longer liable for the various contracts he entered into on behalf of SoftClean Pty

Answer 1

- As per company law, all the contract that is done to form or register a company at the time of proposal have to fulfill after the company formed or register. And paid all the necessary expenses that to done to form a comapny.

- Law is bound legally any person when the written documents is available, verbal promise or commitment cant cot be enforce by the law to force the any person to complete the promise until it is on written.

= so the above question abdul frnd denie to contribute in the company share as per promise for various contract done by abdul to form a company, they can do so.

= And abdul have to pay the amt for various contract that is done for form a company if he register a company or not. If he register a company than the amt paid to various contract to incorporate a company show as pre incorporation expense.