For what period of time is a pre-incorporation offer to buy stock irrevocable?

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🌕 Corporations • Pre-Corporation Formation CORP#006

Legal Definition

The period of irrevocability for a pre-incorporation offer to buy stock is generally 6 months, but this can vary depending on jurisdiction and specific corporate laws.

Plain English Explanation

When a subscriber offers to purchase stock, the corporation has a period of 6 months from the time the offer was made to accept. During this period, the subscriber isn't allowed to change their mind. In other words, their offer to purchase stock is irrevocable for 6 months.

Related Concepts

What are promoters? What are subscribers? 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?

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