Justify the following statement:

Promoters play important role information of a company.

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1 Answers

  • Promoter discovers the idea of business formation.
  • Promoter decides aims and objects of business, amount of capital, scale/size of business.
  • Drafting the ‘Memorandum of Association’ and ‘Articles of Association’.
  • Drafting prospectus to invite investors.
  • To appoint first directors and first subscribers of Memorandum of Association and Articles of Association,
  • To enter into ‘Preliminary Contracts’ like hiring office premises, etc.
  • To protect and promote the interest of the proposed company.
  • Thus, promoters play important role in theformation of a company.

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