Promoter of a Company: Legal Position

Promoter is someone who brings about the incorporation and organization of a corporation. He brings together the persons who become interested in the enterprise, aids in procuring subscriptions, and sets in motion the machinery which leads to the formation itself.
Section 2(69) of The Companies Act, 2013 defines the term “promoter” as a person who has been named in the prospectus or is identified by the company in the annual return referred to in section 92, a person who has control over the affairs of the company, directly or indirectly whether as a shareholder, director and a person in accordance with whose advice, directions or instructions the Board of Directors of the company is accustomed to the act.

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