Question 2 "I do not say that the owner of property may not promote and form a joint stock company, and then sell his property to it, but I do say that if he does so he is bound to take care that he sells it to the company through the medium of a board of directors who can and do exercise an independent and intelligent judgement on the transaction, and who are not left under the belief that the property belongs, not to the promoter, but to some other person." Lord Cairns Erlanger v New Sombrero Phosphate Co (1878).

Requirement Discuss the fiduciary and statutory duties that a promoter owes to prospective shareholders when seeking to establish a new company.