There exist deep conflicts with regard to meaning, status, power and liability of promoters of a corporation in Taiwan's legal circle On one hand the academics are inclined to adopt a formal standpoint On the other hand, decisions of courts insist on a substantive point of view 1 his Article takes sides with formal view By reviewing an important judgment recently handed down by Supreme Court some theoretical and logical problems of substantive view are exposed The Article, then, goes on to claim that adoption of the formal view does not necessarily weaken the protection of those parties who enter into pre incorporation contracts with promoters, as substantive view defenders think it will The Article concludes that adoption of the formal view will realize capital maintenance as well as transaction's security, both of which are important arms Taiwan's Company Law tries to achieve.