Promoters play an important role in the formation of a company. Explai

1.	Promoters play an important role in the formation of a company. Explain.
Answer» A person who take lead to form the company is called a “Promoter”. As per Companies Act, 2013; Section 2(69) Promoter is defined as. A person who has been named in the prospectus or identified by the company in Annual Return or Who has control on company’s affairs directly or indirectly whether as a shareholder, director or otherwise or In accordance with whose advice, directions, or instructions, the Board of Directors is accustomed to act. Role of Promoters: To conceive (discover) the idea of forming a business. To decide aims and objects of business, amount of capital, scale/size of business, etc. Drafting the ‘Memorandum of Association’ and ‘Articles of Association’. Drafting Prospectus to invite investors. To appoint first directors and first subscribers to Memorandum of Association and Articles of Association. To enter into ‘Preliminary Contract’ like hiring office premises, preparing and drafting Memorandum of Association and Articles of Association.

Promoters play an important role in the formation of a company. Explain.

Answer»

A person who take lead to form the company is called a “Promoter”.

As per Companies Act, 2013; Section 2(69) Promoter is defined as.

A person who has been named in the prospectus or identified by the company in Annual Return or
Who has control on company’s affairs directly or indirectly whether as a shareholder, director or otherwise or
In accordance with whose advice, directions, or instructions, the Board of Directors is accustomed to act.

Role of Promoters:

To conceive (discover) the idea of forming a business.
To decide aims and objects of business, amount of capital, scale/size of business, etc.
Drafting the ‘Memorandum of Association’ and ‘Articles of Association’.
Drafting Prospectus to invite investors.
To appoint first directors and first subscribers to Memorandum of Association and Articles of Association.
To enter into ‘Preliminary Contract’ like hiring office premises, preparing and drafting Memorandum of Association and Articles of Association.