I'm in Canada trying to build a board of directors for a venture to roll up the home care industry.

I am following Dan Pena's QLA model of building my board first, solidifying the strategy that I have as a team, warming up lenders and learning there parameters, and then sourcing deals and finding targets from an experienced position.

For the board I need:

- Chairman for M&A experience
- Industry Expert
- CFO for financial modeling and deal structuring and leverage with banks etc..
- Attorney for legal

QUESTION: The model says do not incorporate until you have a deal to close, then you have the lawyer form the company and distribute shares etc. Until that point, my team will be working with me on a handshake deal. Is there any legal responsibility/liability for me personally until the company is formed??

Telling someone ok you will be my chairman for 8% equity for example and then the CFO for 5% etc. What could go wrong if for any reason we don't move forward with the CFO for example and we decide to get a different CFO?