The incorporation of a company into UK has many advantages. It is important for every business to incorporate so that its name becomes recognized. One of the disadvantages is that in some cases the incorporation of a company does not accomplish its purpose and the business may fail. For instance, when the promoters of the business do not enter into proper agreement or enter into a proper seal, then the incorporation of the company may fail. The failure of incorporation of the company can also happen when the name of the company is not properly mentioned in the Articles of Association of a company. Get to know: https://www.cfoacc.com.sg/services/incorporation-of-company
Only a properly established entity with appropriate legal personality can legally enter into a binding contract. So, in case there are no contracts to be signed for the advantage of the business, it is normally entered by the promoter, somebody who is not legally authorized to make such agreements, usually an agent. The failure to enter proper contract may also happen if the promoters or the organizer of the event do not enter in proper agreement, usually a document that holds the signatures of both the firm and the individual promoter.
The failure to incorporate a company in a proper manner can be dealt with in different ways. First of all, the promoters can request the court to enter into proper contracts. After entering into contracts, the company must pay the corresponding taxes and contribute to the shareholders. Also, the promoters must give notice before the incorporation of the company and must post a bond with surety that the company will pay the corresponding taxes on behalf of its shareholders. Also, the company must not undertake any activity which is contrary to the interests of investors.