Promoters’ RightsR ights of Promoters)
(1) Right to take initial expenses – Promoters have the right to recover from the company the necessary expenses that may be incurred in the formation and running of the company, but they will have to produce necessary proofs to cover the expenses. But all these expenditures must be in the form of an Articles of Association.
(2) Right to receive proportionate amount from co-promoter- If one of the co-promoters has to compensate or acquire a secret as a result of a description in the prospectus of a company, that promoter shall recover a proportionate amount from the other co-promoters. Can do.
(3) Right to get remuneration – Since the promoters work hard in setting up and operating the companies, the companies giving them remuneration as their consideration can get remuneration from the promoter company in the following forms- (i) profit, (ii) Remuneration, ) Commission, (iv) Lump sum amount.