1) The duties of a promoter include:

Select one:

a.

To act in the best interests of the proposed company;

b.

To not take an opportunity that belongs to the proposed company;

c.

To avoid a conflict of interest with the proposed company;

d.

To not make a secret profit;

e.

All of the above are correct.

2) Which of the following best describes a 'promoter'?

Select one:

a.

Those that go on to become directors of the company;

b.

Those that prepare the constitution for the company;

c.

Those that complete the application form for registration of the company;

d.

Answers (a), (b), (c) and (e) best describe a promoter;

e.

Those who actively engage in the formation of the company.

3) Before ABC Ltd is registered, Fred signs a contract on its behalf with an outsider. Which of the following is INCORRECT?

Select one:

a.

Fred must disclose any profit he makes from the contract;

b.

Fred must allow ABC Ltd to take up the contract;

c.

Fred can still be liable under the contract even if ABC Ltd takes it up;

d.

Fred can exclude himself from liability by agreement with the outsider;

e.

Fred can owe a fiduciary duty to ABC Ltd for things he did before it was registered.