WebMar 1, 2024 · A promoter is neither an agent of, nor a trustee for, the company because it is not in existence. But he occupies a fiduciary position in relation to the company and … WebLegal Position of a Promoter: The promoter is neither a trustee nor an agent of the company because there is no company yet in existence. The correct way to describe his legal …
Duties and Responsibilities of Promoters of a Company - LinkedIn
WebA 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. The promoter moulds and creates the company and under his supervision it comes into existence. WebStatus of Promoter: A promoter stands in a fiduciary position with the company which he promotes. But he is neither an agent nor a trustee to the future company. The reason is … reformation gavin dress green
Fiduciary Definition: Examples and Why They Are Important - Investopedia
WebFrom the fiduciary position of promoters, the two important results follow: (1) A promoter cannot be allowed to make any secret profits. If it is found that in any particular transaction of the company, he has obtained a secret profit for himself, he will be bound to refund the same to the company. WebView the full answer. Transcribed image text: 1. "A promoter is neither a trustee nor an agent of the company he promotes but he stands in a fiduciary position towards a company and the original allottees of shares”. Comment on the statement. A, B and C, three friends purchased a property. Later they promoted a company and sold this property ... WebFiduciary position of a promoter: 1) Not to make any profit at the expense of the company: The promoter must not male, either directly or indirectly any profit at the expense of the company, which is being promoted. Related to Fiduciary position Fiduciary has the meaning set forth in ERISA Section 3 (21). reformation georgetown