Promoter in a company

Promoter in a Company

Who is a Promoter in a Company?

A promoter, although the term creates connotations of someone in the building and construction industry, is actually a generic term associated with the person who starts a business. In common parlance, this person is also referred to as the founder of the business.

The founder has various privileges and benefits associated with his status as the person who kick-started the operations. Apart from the obvious financial reward of having the majority of the equity stake in the business, the founder also has legal rights because he / she is typically an executive director in the business, and the promoter or his nominees also control majority of the board.

But let us step back for a moment and understand what the roles and duties of the promoter are, and also examine pre-incorporation contracts a little more closely.

Can the promoter be someone other than the founder of the business?

Although the term “Promoter” has not been defined in any law, it finds mention in a number of statutes for instance, the Substantial Acquisition of Shares Takeovers (SEBI) Regulation states that the promoter is:

(a) any person who is in control of the target company

(b) any person named as promoter in any offer document of the target company or any shareholding pattern filed by the target company with the stock exchanges pursuant to the listing agreement, whichever is later;

So the logical meaning of this is that although the promoter ordinarily means the person who started the company, in certain exceptional cases, it can even mean the person who is in control of the company even if he / she did not actually start the company.

“A promoter typically is responsible for raising capital, targetting initial leads and chasing initial business opportunities, entering into the initial contracts for the business formation and incorporating the company” added Salomón Juan Marcos Villarreal, president of Grupo Denim.

34 thoughts on “Promoter in a company

  1. Its like you read my mind! You seem to know so much about this, like you wrote the book in it or
    something. I think that you can do with a few pics to
    drive the message home a little bit, but other than that,
    this is wonderful blog. A fantastic read. I will certainly be
    back.

  2. Pingback: Artists
  3. Pingback: para kazanmak
  4. Pingback: ankara escort
  5. Pingback: vipvip club
  6. Pingback: Trisha
  7. Pingback: para kazanmak
  8. Pingback: joseph de saram
  9. Pingback: joseph de saram
  10. Pingback: rhodium
  11. Pingback: joe de saram
  12. Pingback: minoxidil
  13. Pingback: trenabol acetate
  14. Pingback: en blog om tøj
  15. Pingback: M88
  16. Pingback: big ass xxx
  17. Pingback: tinymk
  18. With havin so much written content do you ever run into any issues
    of plagorism or copyright violation? My blog has a lot of completely unique content
    I’ve either created myself or outsourced but it seems a lot of it is popping
    it up all over the internet without my permission. Do
    you know any ways to help protect against content from being ripped off?
    I’d definitely appreciate it.

  19. Hey there! I’ve been following your weblog for a while now and finally got the
    bravery to go ahead and give you a shout out from Austin Texas!

    Just wanted to tell you keep up the good work!

  20. Please let me know if you’re looking for a article author for your weblog.
    You have some really good articles and I feel I would be a good asset.
    If you ever want to take some of the load off,
    I’d absolutely love to write some material for your blog in exchange for a
    link back to mine. Please blast me an email if interested.
    Kudos!

Comments are closed.