What is meant by pre-incorporation period?
What is meant by pre-incorporation period? Profit of a business for the period prior to the date company into existence is referred to as Pre-Incorporation profit. Hence prior period item are those item which is done before incorporation of the company. Profit prior to incorporation is the profit earned or loss suffered during the period before incorporation. What is a pre incorporate contract? PRE-INCORPORATION CONTRACTS. Are contracts purported to be made on behalf of the company before its incorporation[16]. Pre-incorporation contract is defined in Section 72 as “any contract or other transaction purporting to be entered into by the company...