What are subscribers?

🌕 Corporations • Pre-Corporation Formation CORP#005

Legal Definition

Subscribers are persons or entities who make written offers to buy stock from a corporation not yet formed.

Plain English Explanation

A subscriber is someone who is interested in being a shareholder of a corporation but can't actually buy any shares since they don't yet exist (because the corporation hasn't been formed yet). Thus, a subscriber has agreed to buy stock at a later point when the stock is available for purchase.

Related Concepts

For what period of time is a pre-incorporation offer to buy stock irrevocable? What are promoters? What duties must promoters follow as fiduciaries? When is a corporation liable for its promoter's contracts? When is a promoter liable for their contracts?

Back to Pre-Corporation Formation All Topics

Get Law School Boost for Free!

Law School Boost makes studying for law school and the Bar easier using our science-backed, A.I.-driven, adaptive flashcards with integrated hypos, plain English legal translations, and memorable illustrations. Start now for FREE!