Do You Know What Are The Functions Of Promoters, And How Many Kinds Of Promoters Are There?

The functions of promoters are to conceive the idea of forming a company. To find out persons who are willing to sign the memorandum of association and to act as first directors. To select the name of the company and settle the amount and form of its capital, the kinds of shares and the rights of various shareholders. To select a bank, auditors, legal advisers and brokers for the company. To arrange for the preparation and printing o f memorandum, articles and prospectus. To arrange the registration of the company. To arrange for advertisement of the prospectus. To pay preliminary expenses. To disclose fully all-material facts relating to the information of the company. To arrange for the completion of the contracts with vendors, managing agents and underwriters. To secure allotment of shares and debentures. To take steps to obtain certificate of commencement of business. To arrange for office, factory, machinery and staff.

Types of promoters:
Promoters can be divided into two types professional promoters and occasional promoters.
The professional promoters are those who have adopted promotion of companies as their profession. The main function of professional promoters is to promote a company and hand it over to the shareholders on some remuneration.
The occasional promoters are those who promote a particular company. Once a company is promoted they to back to their old profession.

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