“Promoter plays a significant role in the formation of a company”. In the light of the above statement
explain any five functions performed by the promoter?
Answers
Answer:
The term 'promoter' is a term of business and not of law. ... “Promoter is the person who originates the idea for formation of a company and ... Liability for mis-statement in the prospectus:.
Promoters are generally the first persons who conceive the idea of business.They carry out the necessary investigation to find out whether the formation of a company is possible and profitable.
Answer:
1,Promotion of an Idea: It is the promoter who has to conceive the idea of forming a company. This is the first step towards the formation of a company.
2,Verification: The promoter should also verify whether the advises or comments or reports made by the experts are free from bias. He should also consult with other impartial and disinterested experts and should see whether the idea is commercially viable.
3. Assembling: After verification of the idea, the promoter should go ahead with the promotion of the projected company. He should find out the first directors and the subscribers to the Memorandum.
4,To conceive an idea of forming a company and explore its possibilities.
5,To conduct the necessary negotiation for the purchase of business in case it is intended to purchase as existing business. In this context, the help of experts may be taken, if considered necessary.