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Question
Pedro is a corporate promoter for Nolo Corporation, a corporation yet to be formed. Pedro spends $40,000 of his own money and devotes 400 hours to bring Nolo and its business into existence. When Nolo is incorporated, Pedro asks the board of directors to issue some of its common shares to Pedro as compensation for his expenses and services. Would such an issuance be legal?
Answer
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Related questions
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