Explain the ways in which a promoter is given remuneration
Answers
A promoter may be paid in cash, or partly in cash and partly in shares and debentures of the company. But in the absence of an agreement his renumeration cannot be binding.
So even if the AOA provides that the company shall reimburse the expenses incurred by the promoters, such a provision is not binding on the company. AOA is only a power giving document and does not give the right to utilize this power.
To receive his renumeration and all the expenses incurred, a contract with the company has to be made after its incorporation by a resolution passed in the meeting of BOD.
Answer:
Answer ⬇️
Explanation:
A promoter has the right to receive remuneration from the company unless a contract to the contrary. The company's Articles of Association can also provide that the directors can pay an amount to the promoters for their services. However, the promoters cannot sue the company for remuneration unless there is a contract.
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