Meaning and definitions of originato
(Meaning and Definition of Promoter) Promoter means such persons who, after carrying out necessary research in their mind, make the company according to a certain plan. In other words, promoters mean such persons who do business related research and form the company according to a certain plan, collect the necessary materials. and prepare the outline of the company’s operations. Promoters play an important role in the formation and development of companies. Promoter can be an individual, a group of persons or a firm or a company. (1) According to Lord Blacburn, “The word originator is a short and convenient way of addressing the persons who start the machine by which the company
The Act enables them to form an amalgamated company.” (2) According to Sir Francis Palmer, “Promoter is the person who plans the formation of the company, prepares the memorandum and articles of association. Gets them registered and selects the first directors, settles the terms of the initial agreements and prospectus and arranges for publication of the prospectus and raising of capital.
(3) According to section 2 (69) of the Companies Act, 2013, “promoter” means a person whose name is mentioned or numbered in the prospectus as a promoter or who is identified as a promoter in the annual return of the company. or which has direct or indirect control over the affairs of the company as a shareholder or director or in any other form or according to whose advice or directions the board of directors of the company is accustomed to act. But if any person in his professional capacity gives advice or direction, he shall not be deemed to be an originator.”
(4) According to Guthman and Daugal, “Promoter is the person who plans the formation of the company and brings the company into existence as an artificial person.”
Thus, promoter means those persons who plan the formation of a company and carry out many tasks to give it a real shape.