Is promoter a agent or trustee?

Is promoter a agent or trustee?

A promoter is neither a trustee nor an agent of the company which he promotes because there is no trust or principal in existence at the time of his efforts. But certain fiduciary duties, like an agent, have been imposed on him under the Companies Act.

Why is a promoter not a trustee?

Answer: A promoter is neither a trustee nor an agent of the company but he has a fiduciary relationship with the company. Therefore he is liable to disclose all the relevant facts and any secret profit made by him in relation with the formation of the company.

Is promoter an agent of the company?

A promoter is neither an agent nor a trustee of the company because it is a non entity before incorporation. Some legal cases have tried to specify the status of a promoter. He stands in a fiduciary position.

What do you mean by the promoters of a company and what are the duties of promoters?

Promoter of a company can be defined as the one whose function is to form a company with reference to a given object and to set it going. “Promoter is one who undertakes to form a company with reference to a given object and to set it going, and who takes the necessary steps to accomplish that purpose.”

What is a trustee do?

The trustee acts as the legal owner of trust assets, and is responsible for handling any of the assets held in trust, tax filings for the trust, and distributing the assets according to the terms of the trust. Both roles involve duties that are legally required.

What is the legal status of a promoter?

The legal position of promoters is that he is neither agent nor employee of the company but he stands in fiduciary capacity. Fiduciary capacity brings two duties of promoters i.e. duty not to make secret profit and duty to disclose to company. Such disclosures may be made in Articles, board of directors or in AGM.

What are the duties of a promoter?

Promoter job description

• Demonstrating and providing information on promoted products/services.
• Distributing product samples, brochures, flyers etc. to source new sales opportunities.
• Using lectures, films, charts, and/or slide shows.

What are the roles of promoters?

A promoter is someone, who has been connected with the business from the start. He can also be referred to as the starter of a business or the founder. He is responsible for raising capital from various sources and entering into the first agreements for the start of a business and incorporation of a company.

What are the responsibilities of promoter?

Promoter responsibilities include: Demonstrating and providing information on promoted products/services. Distributing product samples, brochures, flyers etc. to source new sales opportunities. Using lectures, films, charts, and/or slide shows.

What promoter means?

a person who initiates or takes part in the organizing of a company, development of a project, etc. a person who organizes and provides financial backing for a sporting event or entertainment.

What are the roles of a promoter?

Promoters demonstrate and provide information on products or services for various brands and/or companies. Their duties include showing potential customers how a product or service works. They also answer questions and aim to convince customers to buy a product or service.

What a trustee Cannot do?

The trustee cannot fail to carry out the wishes and intent of the settlor and cannot act in bad faith, fail to represent the best interests of the beneficiaries at all times during the existence of the trust and fail to follow the terms of the trust. And most importantly, the trustee cannot steal from the trust.