WebDec 27, 2024 · Promoters are not the Company’s trustees or agents. He behaves in a fiduciary capacity for the Company. He takes action to create the company and pays the … WebDec 27, 2024 · This restriction is not applicable in instance where the company in which ninety per cent. or more members, in number, are relatives of promoters or are related parties. Shareholders' Approval: In the below-mentioned cases, in addition to board approval, the Company also requires a shareholders' approval via an ordinary resolution:
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WebAug 9, 2024 · According to company law, promoters doesn’t have a legal position. A promoter is a non-entity until the company has been incorporated. He has a fiduciary … WebSep 21, 2024 · In this sense, the promoters are the originators ofthe plan for the formation of a company.They are the ones who It to arrange or find ones who can arrange the share … raindrops fall to saturated
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WebApr 4, 2015 · A promoter is neither a trustee nor an agent of the company which he promotes because there is no trust or principal in existence at the time of his efforts. But certain fiduciary duties, like an agent, have been imposed on him under the Companies Act. WebThe company law has not given any legal status to promoters. A promoter is neither an agent nor a trustee of the company because it is a non entity before incorporation. Some legal cases have tried to specify the status of a promoter. He stands in a fiduciary position. WebAug 25, 2024 · A promoter can neither be termed as an agent nor a trustee of a company which has not come into existence. The reason is that there was no principal or trust in existence for whom or for whose benefit the promoter has acted. Thus, the legal position of the promoter cannot be precisely established. raindrops falling song