Principle

No. XI.3 - Liability of corporate founders

The founders are liable for debts incurred in the pre-incorporation phase.

Commentary

The Principle is based on the understanding that prior to the coming into existence of the corporation as a separate legal entity, the founders of that corporation, who have a direct interest in the establishment of the corporation, must be held liable for the debts incurred in the context of the incorporation prior to the coming into existence of the corporation as a separate legal entity.

Please cite as: "Commentary to Trans-Lex Principle XI.3 - Liability of corporate founders, https://www.trans-lex.org/964000"

References

Doctrine

Buxbaum, Richard M., The Formation of Marketable Share Companies, in: David/ Conrad (ed.), International Encyclopedia of Comparative Law, Bd. XIII, Tübingen 1974, at 36 et seq.

Dasser, Felix, Internationale Schiedsgerichte und Lex Mercatoria, Zürich 1989

Derains, Yves, note to ICC Award No. 5065, Clunet 1987, at 1043 et seq.

Heinemann, Klaus, Pre-incorporation Transactions, Cologne, Berlin, Bonn, Munich 1990

Mayer, Pierre, Le Principe de Bonne Foi devant les Arbitres du Commerce International, in: Festschrift Pierre Lalive, Basel, Frankfurt a.M. 1993, at 543 et seq.

Arbitral Awards

ICC Award No. 5065, Clunet 1987, at 1039 et seq.