Q.1 (a) Explain the liabilities that a 'promoter' of a company may incur and how s/he may be protected from such liabilities.

Q. 2 Ben who carried on a small but lucrative business as a motor vehicle repairer with a staff of eight, agreed together with all those employees to combine in a joint venture to carry on the business of second hand car sales and car hire with a company incorporated in the name of "Rentacar"; each of the nine putting 6000 into the undertaking. The company received its certificate of incorporation on 1 January. One month before incorporation, Ben representing himself as managing director of the company, agreed to purchase 1000 worth of carpets and furniture for the directors' offices. These items were delivered but remain unpaid. The supplier wishes to know who, if anyone, can be made liable.