CASPOT.com now presents all it users the notes for all CA IPCC and CS students for INCORPORATION OF COMPANIES.
Promotion: It means the preliminary steps undertaken by the promoters to bring a company into
existence.
Promoter:-[Section 2(69)]-
Definition: It means a person
- Who has been named in prospectus or is identified by the company in annual return.
- Who has control over the affairs of the company, directly or indirectly.
- In accordance with whose advice, directions or instructions the BOD is accustomed to act.
Meaning: It is a person or a group of persons who generates the idea of incorporating a company and takes all the
effective steps to incorporate it.
Legal position of the promoter:-
1. Not an agent: - He cannot be an agent of the company which he promotes because his principle (company) does
not exist at the time when he acts on its behalf.
2. Not a trustee: - A promoter is not the trustee of the company because there cannot be any trust before
company comes into existence.
3. Fiduciary position/relation to the company: - The promoters stand in the fiduciary relation to the company i.e.
a relation of trust, confidence and good faith.
Hence, a promoter is neither an agent nor a trustee of the company but he is in a fiduciary relationship with the
company.
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ADMIN : NISHANT JAIN
Promotion: It means the preliminary steps undertaken by the promoters to bring a company into existence.
Promoter:-[Section 2(69)]-
Definition: It means a person
- Who has been named in prospectus or is identified by the company in annual return.
- Who has control over the affairs of the company, directly or indirectly.
- In accordance with whose advice, directions or instructions the BOD is accustomed to act.
Meaning: It is a person or a group of persons who generates the idea of incorporating a company and takes all the
effective steps to incorporate it.
Legal position of the promoter:-
1. Not an agent: - He cannot be an agent of the company which he promotes because his principle (company) does
not exist at the time when he acts on its behalf.
2. Not a trustee: - A promoter is not the trustee of the company because there cannot be any trust before
company comes into existence.
3. Fiduciary position/relation to the company: - The promoters stand in the fiduciary relation to the company i.e.
a relation of trust, confidence and good faith.
Hence, a promoter is neither an agent nor a trustee of the company but he is in a fiduciary relationship with the
company.
FOR COMPLETE NOTES DOWNLOAD FROM ANY OF THE TWO SERVERS
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ADMIN : NISHANT JAIN
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