What allows a promoter to avoid issuance of certain contracts?

A promoter can avoid the issuance of certain contracts through an agreement of novation. Novation occurs when there is a replacement of an old obligation with a new one, effectively transferring the rights and obligations from one party to another with the consent of all involved parties.

In the context of a business or corporation, a promoter may be responsible for entering contracts on behalf of a company that is yet to be formed. If that company is formed and agrees to take on those contracts through a process of novation, the original promoter can be released from their obligations under those contracts. This is crucial as it helps to avoid personal liability for the promoter, ensuring that once the company is established, it can step in and assume responsibility for debts and contracts made during its formation phase.

Other options pertain to different aspects of corporate governance or shareholder engagement but do not directly relate to the specific mechanism that explicitly allows a promoter to absolve themselves from certain contracts. Retaining ownership of shares primarily concerns ownership rights rather than liability for contracts. Obtaining shareholder signatures and filing annual reports are procedural actions that do not create the legal effect of novating contracts.