after the corporation was formed the board of directors refused to adopt the preinco 626998
Norwood was a promoter of Parker Corporation. On March 15, Norwood purchased some real estate from Burrows in Parker’s name and signed the contract “Norwood, as agent of Parker Corporation.” Parker Corporation, however, did not legally come into existence until June 10. Norwood never informed Burrows on or before March 15 that Parker Corporation was not yet formed. After the corporation was formed, the board of directors refused to adopt the preincorporation contract made by Norwood concerning the real estate deal with Burrows. Burrows sued Parker, Norwood, and the board of directors. Which of the following is correct?
- None of these parties can be held liable.
- Norwood only is liable.
- Norwood and Parker are liable but not the board of directors.
- Norwood, Parker, and the board of directors are all liable.