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If a promoter fails to disclose the profits, made by him in the course of promotion or he knowingly makes a false statement in the prospectus, whereby the person relying on that statement, makes a loss, he will be liable to make good the loss, suffered by that other person. The promoter is liable for
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If the proposed endeavour gives promise of success and the promoter is willing to undertake the risk of forming the business, step must be taken to assemble various factors of production, such as land, labour, capital and managerial personnel. Assembly of resources involves making contracts for the
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Promoters undertake a detailed investigation of the viability, profitability and future prospects of the growth of the proposed activity, and may seek the help of specialists such as lawyers, accountants, cost accountants, a company secretary, and engineers. Organisations engaged in market research
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and exercise reasonable care in performing their duties. They must refrain from self-dealing or other types of abuse to take advantage of their position as a promoter. Self-dealing occurs, for example, when a promoter unfairly profits from the conduct of business with the company by charging higher
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not to make any secret profit out of the promotion of the company. Secret profit is made by entering into a transaction on their own behalf and then selling the concerned property to the company at a profit, without disclosing the profit to the company or its members. Promoters can make profits in
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The first stage in company promotion is the generation of new ideas. It is the promoter who conceives the idea of setting up a business, and makes an assessment of the viability of a particular aspect within the business be it technical feasibility, financial feasibility, economic feasibility or
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These promoters take interest in floating some companies. They are not engaged in promotion work on a regular basis. They take up the promotion of some company and once it is over they resume their original profession. For instance, engineers, lawyers etc. may float some companies.
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may, wholly or in part, perform the role of a promoter. Promoters generally owe a duty of utmost good faith, so as to not mislead any potential investors, and disclose all material facts about the company's business. An earlier term for such a person is
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A person, who subscribes for any shares or debenture in a company on the faith of the untrue statement contained in the prospectus, can sue the promoter for the loss or damages, sustained by the subscriber as the result of such untrue statement.
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and other specialised agencies. Specialists are in a position to make an objective analysis of their own areas which may help the promoters. Decisions have to be taken regarding the size, location, layout, manpower etc.
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The promoter may enter into contracts with third parties in anticipation of the registration of a company; but after registration, the company must approve or confirm these contracts.
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They are both promoters and entrepreneurs. They conceive the idea of a new business unit, do the groundwork to establish it and may subsequently become a part of the management.
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The promoter has to select a name of the company while selecting the name the promoter keeps in mind that the name should not be identical to the name of any other company.
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Some financial institutions, like investment banks or industrial banks, may take up the promotion of a company with a view to finding opportunities for investment.
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A promoter can be a shareholder in the promoted company. If the promoter is the only shareholder, the company may, in compliance with the rule of the
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purchase of these resources. Promoters organise the resources to convert the idea into a reality by forming a company.
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267:Detailed investigation
250:Functions of promoters
234:Entrepreneur promoters
183:conflicts of interests
171:fiduciary relationship
664:Aspects of workplaces
563:Social responsibility
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349:Wiktionary:projector
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65:"Corporate promoter"
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19:For other uses, see
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217:Types of promoters
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48:Please help
43:verification
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518:Psychopathy
493:Opportunity
488:Nationalism
433:Citizenship
410:Aspects of
150:underwriter
706:Categories
533:Resolution
513:Propaganda
483:Narcissism
468:Interlocks
321:References
106:April 2014
76:newspapers
696:Companies
473:Liability
448:Despotism
175:investors
159:projector
142:flotation
134:promotion
593:Taxonomy
568:Sourcing
548:Services
543:Security
538:Scandals
528:Recovery
508:Promoter
463:Identity
301:See also
603:Trainer
583:Synergy
573:Statism
375:. 1905.
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682:Portal
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458:Ethics
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623:Veil
523:Raid
69:news
588:Tax
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