A group of persons, called promoters have submitted an application to the Registrar of

Companies, New Delhi for getting a company incorporated as a public company. Pending the

Registrar's decision of granting certificate of incorporation, the promoters enter into certain

contracts for the purchase of some assets proposed company.

a. Explain the legal position of promoters' liability and the liability of the proposed

company after its incorporation, in this regard.

b. Differentiate between reconstructions, merge and take overs