The corporate formation agreement is one that specifies details of structure and establishment of a corporate. The corporate formation agreement is a legal agreement that is necessary for the functioning of every corporate irrespective of its nature of business. The corporate formation agreement is one that provides the very constitution of a corporate and provides reason for its existence.
Some of the details that are provided in the corporate formation agreement are name of the company, names of key officers of the corporate, total number of shares and shares held by the members of board, registered office of the corporate, its branches if any, the nature of business of the corporate, its liabilities etc. The agreement defines the relationship of the corporate with the external persons in a regulated manner. All the clauses that are specified in the corporate formation agreement are legally binding and have to be adhered to without fail by the members of the corporate.
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