The Responsibility of Company Founders for the Acts and Transactions Concluded for the Benefit of the Company under Establishment

In general, establishing a company requires its founders to perform many of the acts stipulated by the Companies Law in order to complete its establishment, in addition to concluding many transactions for the benefit of the company under establishment, including contracts concluded by the founders with third parties. The Iraq Companies Law and other laws have stipulated many provisions regarding the establishment of the company, most of which appear to be mandatory rules, in order to protect the multiple interests associated with the company under establishment. However, the founders of the company may commit some violations related to the establishment of the company by violating the procedures stipulated by law regarding it. In addition, there are some violations related to the actions and contracts concluded by the founders for the benefit of the company under establishment, which necessitates their liability for these actions. In order to clarify these violations and the liability arising from them, the research will be divided into two sections as follows: Section One: The founders’ liability for incorporation violations Section Two: The founders’ liability for the actions and contracts concluded for the benefit of the company under establishment