Anterior Obligations for commercial corporation formation

Anterior (prior) obligations for the formation of commercial corporations include obligations for incorporation and posterior (later) obligations for incorporation (assuming annulment of Commercial Corporation). Because these obligations are in association with the rights of third parties, the performance of obligation and liability of a committed person requires a detailed study. The main question of this paper asks who is responsible to carry out the abovementioned obligations. Results showed that the first ones (obligation before incorporation) cannot be analyzed based on the representation theory in the legal system of Iran because of the absence of the corporation at the time of signing contracts and other procedural and legal considerations. Hence, this is an independent obligation called “undertaking a third between founders and third parties” without imposing any obligation on the corporation unless the biding obligations for corporation formation. According to the current assumption, obligations are corporation commitments without any authorization when the corporation is formed. In the context of the second type of commitment (later to incorporation based on the assumption of commercial corporation annulment), such companies cannot be considered as partnership corporations and liabilities cannot be legally imposed on partners based on the commitment validity theory. Therefore, the liquidator is responsible to carry out obligations for third parties from incorporation to annulment. Hence, the effect of the inalienability of corporation annulment against third parties indicates that they can benefit from company assets and properties before distribution during the settlement process based on the contract procedure.