ELEMENTS OF COMPANY LAW
| Institution | UNIVERSITY |
| Course | Diploma in Cooperati... |
| Year | 1st Year |
| Semester | Unknown |
| Posted By | stephen |
| File Type | |
| Pages | 13 Pages |
| File Size | 580.56 KB |
| Views | 11396 |
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Description
Promotion is conducted by persons who come up with the idea to form a company. A promoter is the person who conceives the idea of forming a company and who undertakes, does and goes through all the formalities and incidental preliminaries of incorporation. Legal position of the promoters A promoter is not an agent of the company during formation because the principal (company) does not legally exist. A promoter is not a trustee of the company during formation because the beneficiary doesn’t exist. Promoters are fiduciaries of the company with regard to formation. They have on their hands the creation and molding of the company. This is an equitable relationship based on trust, confidence and good faith. It imposes upon the promoter certain equitable or fiduciary obligations.
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