How Can You Define Promotion And Promoter; What Is The Importance Of A Promoter?

Promotion:
                   In the first stage in the formation of a company, it is the process of exploration, investigation and the organization of necessary resources with the object of starting business in the form of a company.
                   First of all the idea of carrying on a business is conceived either by a person or by a group of persons who are called promoters. The promoters take some steps to investigate about the success or failure of business. In other words the steps which are taken to persuade number of persons to come together for the achievement of a common objective through the company is called promotion.

Definition and importance:
                                             The person or persons who undertake the responsibility of bringing a company into existence are called promoter.
                   In fact, persons who give instructions for the preparation and registration of the memorandum and articles of association are promoters. So, these are persons who obtain the directors, issue a prospectus and negotiate underwriting contracts or a contract for the purchase of property by the company capital.
                   A solicitor, who prepares on behalf of the promoters the preliminary documents of the proposed company, is not a promoter. Similarly, an accountant or a valuer, who helps the promotion in his professional capacity, is not a promoter.

What are the eligibility of a promoter to form a company