This document is a clause which can be inserted into a pre-registration contract. A pre-registration contract is a contract entered into by a person on behalf of a company, where that company is yet to be incorporated.
The Corporations Act 2001 (Cth) (Act) permits a pre-registration contract to be ratified by the company following the incorporation of it, thus binding the company.
If a registered company does not subsequently ratify the contract, orders may be made by the court. The court may make any orders it considers appropriate in the circumstances. Any rights or liabilities that a person or a corporation would otherwise have on the pre-registration contract will be replaced by those provided for in the Act.
This document has been authored for LexisNexis by Tom Bostock, Special Counsel, Gadens Lawyers with amendments and author introductory note by Jane Garber-Rosenzweig, Principal, Gable Lawyers.
This document is prepared with the assistance of Specialist Editor Stephen Newman, Executive Counsel, Ponte Earle.