A promoter is responsible for assembling the resources needed to form a company, including people, money, and materials. The document outlines the various duties of a promoter such as selecting directors and bankers, preparing legal documents, paying initial expenses, arranging capital investments, and ensuring minimum share subscriptions. Promoters are entitled to reimbursement of legitimate startup costs and compensation, but they also have fiduciary responsibilities to act in the best interests of future shareholders and not profit secretly. The document was prepared by two students for a class assignment.

1. “A PROMOTERIS A PERSON WHO ASSEMBLES THE MEN,THE
MONEY AND THE MATERIALS INTO A GOING CONCERN”
-: GUTHMANNAND DOUGHALL
VATS AND VASHISTH

2. VATS AND VASHISTH
•MAKING AGREEMENT WITH SELLER AFTER
BUYING THE BUSINESS
•PLANNING THE FORMATION AND ASSESSING
THE POSSIBILITIES
•CONSIDERING THE PRE-START PROBLEMS
•SELECTING THE FIRST DIRECTOR OF THE
COMPANY AND GETTING THEIR CONSENT

3.  SELECTING THE BANKERS SIGNATORIES TECHNICAL EXPERTS
UNDERWRITERS
 PREPAIRING PROSPECTUS, A.O.A, M.O.A
 BEING PRESENT AT TIME OF REGISTRATION
 GETTING THE CERTIFICATE OF INCOORPORATION FROM
REGISTRAR
 GETTING COMPAN’S PROSPECTUS PUBLISHED AND
ADVERTISED
 MEETING INITIAL EXPENSES
 ARRANGING FOR INVESTMENT OF CAPITAL
 ARRANGING MINIMUM SUBSCRIPTION

4. RIGHT TO GET LEGITIMATE
PRELIMINARY EXPENSES
RIGHT TO GET PROPORTIONATE
AMOUNT FROM CO.PROMOTERS
RIGHT TO GET REMUNERATION

5. TO DISCLOSE PRIVATE ARRANGEMENTS
TO DISCLOSE SECRET PROFITS
TO DISCLOSE ALL MATERIAL FACTS
TO DISCLOSE PROFIT WHICH HE HAS EARNED
AS A TRUSTEE
TO SHOW GOODWILL TOWARDS FUTURE
SHAREHOLDERS

6. DUE TO FIDUCIARY RELATIONSHIP
IN CASE OF FRAUD OR BREACH OF DUTY
MISTATEMENT IN PROSPECTUS
ON DEATH OF PROMOTER
ON COMPLETION OF CONTRACT
WINDING UP OF COMPANY
LIABILITIES

7. REMUNERATION
OPTION TO
PURCHASE
SHARES
ROFIT
ON
ASSETS
CASH

8. MADE BY :- AKASH VASHISTH
&
DEVVRAT
VATS
B.COM
HONORS
SUBMITTED TO :-SEEMA MALIK MAM
CLASS:-

9. DEVVRAT AND AKASH