1. *Remuneration:
o By Commission
o By Awarding Shares (Deferred Share)
o By selling the Property to the Company on Profit
*Legal Status (quasi trustee or quasi agent)
A Promoter are having a Relation of Confidence with the
Founding Company ,so they are not Permitted to get Secret
Profit if they do so they will be Responsible to the Company on
its Existence .In real sense they are not the Agent or trustee and
cannot work as a Trustee and as agent Because
Yet the Company is not in Existence
This is based on a Principle
That the UN born entity cannot enter in to a contract
*Liability of Contract:
Promoter are Responsible for all the pre incorporation Contract
for the Company and the Company is not responsible for that
until and unless another Agreement is sign on the principle
Condition of Previous one .
*Liability to Reimburse:
o Any Fraud in Prospectus
o Any Secret Profit
o Any Breach of Trust
*Retirement:
On Registration of Company
Exception. After registration by issuing of prospectus
Subject: Company Law
Standard: LL.B second year
Topic: Promoters
MUNIR HUSSAIN KTK
Lecturer
UNIVERSITY LAW COLLEGE
QUETTA
www.facebook.com/pages/Corridor-to-Commercial-Law
Objective
To Learn
1. The concept of promoters
Promoter is not a Legal term,
it is a Business Term. it is very
Difficult to give a Single
Definition Because it depends
upon the Circumstances of
each case.
1. Idea of business 2. Analysis the Existence 3. Make the People Together 4. Choose the Name of
Company 5. Analysis the Capital 6.Choose the Auditors Directors etc. 7.Prepare the MOA,AOA
8.To make the Arrangement for Registration 9.To bear the Initial Expenses 10.To Arrange the
Offices ,worker etc.. Promoter will be declared on the basis of work done
Fiduciary relation with
company they are quasi
trustee or quasi agent
having relation of confidence
with promoting company