Q7 of 28 Page 182

Preliminary Contracts are signed

During the promotion of the company, promoters enter into certain contracts with third parties on behalf of the company. These are called preliminary contracts or pre-incorporation contracts.

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5

A prospectus is issued by

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Stages in the formation of a public company are in the following order

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Preliminary Contracts are

 1

It is necessary to get every company incorporated, whether private or public.