who is promoter under companies act 2013 cs notes



Posted on 23-03-2016        By ADMIN



who is promoter under companies act 2013 cs notes

2 (69) “promoter” means a person— 

who has been named as such in a prospectus or is identified by the company in the annual return referred to in section 92; or 

 who has control over the affairs of the company, directly or indirectly whether as a shareholder, director or otherwise; or 

in accordance with whose advice, directions or instructions the Board of Directors of the company is accustomed to act: 

Provided that nothing in sub-clause (c) shall apply to a person who is acting merely in a professional capacity; 

The term is defined to bring clarity. Promoters have been held liable at various provisions of the Act for ex.

 Incorporation by false documents, alteration of objects for which the company has raised funds, misstatements in prospectus etc. 




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