"Promoters of a company enjoy a fiduciary position with the company which they must not misuse".Justify(3)
Business Studies,Class-XI
Please give 3 good points i will mark ur answer as brainliest
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A promoter stands in fiduciary capacity to company because he owes certain duties to the company. Promoters' duties are the same as a person who acts on behalf of another person without a contract of employment, and. fundamentally undertakes not to deceive and to exercise reasonable care and skill.
1. To conceive an idea of forming a company and explore its possibilities.
2. 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.
3. To get the Memorandum of Association (M/A) and Articles of Association (A/A) drafted and printed.
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