Meaning
Conveyance occurring before the legal birth of a company involves an individual moving rights or property to a promoter or an intended entity. A pre incorporation asset transfer requires the board of directors to formally ratify the deal once the company is officially registered. This mechanism prevents the founder from claiming personal ownership of tools or code used to build the initial prototype.
Ratification Protocol
Ratification Protocol is the process by which the newly formed corporation adopts the contracts made before its existence. The board must pass a resolution that explicitly accepts the assets and the liabilities associated with them. This step creates a continuous chain of ownership that starts before the filing of the incorporation papers.
Without this formal act, the assets may remain in the hands of the individual founder. The record of ratification is a primary document in any technical or legal audit.
Property Description
Property Description must be exact to ensure the company knows what it has acquired. This record often includes serial numbers for hardware or repository hashes for software code.
Founder Obligation
Founder Obligation requires the creator to assist the company in perfecting the title after formation. Properly ratified transfers ensure that the corporate shield protects the assets from the personal liabilities of the founders.
