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What is the role of promoter in the formation of a company
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The term 'promoter' encompasses A wide range of persons including the person who undertakes for the organization of a business company.
A promoter is a sequence of dna that initiates the process of transcription.
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Promoters in company law
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Can a promoter make profit out of a promotion?
A promoter is not forbidden to make profit but to make secret profit [ 14] . He may make a profit out of promotion with the consent of the company, in the same way as an agent may retain a profit obtained through his agency with his principal’s agent.The challenging job is to discover who may give the necessary consent on behalf of the company.
What does a promoter do after an idea is conceived?
After the idea is conceived, what promoter does is to make detailed investigations to find out the weaknesses and strong points of the idea, determine the amount of capital required and estimate the operating expenses and probable income.
What are the duties of a promoter in a company?
On handling the control of the company to the directors, the promoters fiduciary and common law duties cease, and he is thereafter subject to no more extensive duties in dealing with the company than a third person who is unconnected with it. [ 9]
Can a promoter be an agent or trustee of a company?
It is however interesting to note that he (the promoter) is neither an agent nor a trustee of the company that he proposes to establish [ 11] . He is not an agent because there is no company yet in existence and he is not a trustee because there is no trust in existence.
Last Update: Oct 2021
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