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Peter is a corporate promoter for Enrod Corporation, a corporation yet to be formed. Peter spends $40,000 of his own money and devotes 400 hours
Peter is a corporate promoter for Enrod Corporation, a corporation yet to be formed. Peter spends $40,000 of his own money and devotes 400 hours to bring Enrod and its business into existence. When Enrod is incorporated, Peter asks the board of directors to issue some of its common shares to Peter as compensation for his expenses and services. Would such an issuance be legal? Explain.
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