1.Incorporation

Q1 (Incorporator)

What’s an incorporator? And who becomes the incorporator?

The incorporator is the person who signs the articles of incorporation prepared at the time of incorporation. His substantive role is to prepare the initial articles of incorporation and to execute other acts related to the incorporation process. And the incorporator must purchase at least one share of the company’s stock (Companies Act, Article 25, Section 2), so he is also an investor. The incorporator can incur legal liability if he neglects his duties and the corporation suffers damage as a result, so the incorporator bears a heavy responsibility (Companies Act, Article 52, Section 53). In a typical start-up situation, one of the founders is usually the incorporator. In the case of a subsidiary, the incorporator is usually the parent company.

(Posted: January 27, 2012)