Scribd Logo
Upload

Welcome to Scribd!

  • 163 views

    Position of Promoters in India

    Uploaded by

    aastha
    This document is a draft submitted by Aastha Singh Rajput to their professor, Ms. Nandita S. Jha, at Chanakya National Law University. The draft analyzes the position of promoters in India under the Companies Act, 2013. It introduces the concept of a promoter, their functions and obligations. The draft proposes to examine a promoter's relationship with the company and shareholders. It hypothesizes that a promoter molds the company but is neither an agent nor trustee prior to incorporation. The research methodology relies on doctrinal sources like books, journals and statutes.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd

    Position of Promoters in India

    Uploaded by

    aastha
    163 views3 pages
    This document is a draft submitted by Aastha Singh Rajput to their professor, Ms. Nandita S. Jha, at Chanakya National Law University. The draft analyzes the position of promoters in India under the Companies Act, 2013. It introduces the concept of a promoter, their functions and obligations. The draft proposes to examine a promoter's relationship with the company and shareholders. It hypothesizes that a promoter molds the company but is neither an agent nor trustee prior to incorporation. The research methodology relies on doctrinal sources like books, journals and statutes.

    Original Description:

    POSITION OF PROMOTERS UNDER COMPANIES ACT

    Copyright

    © © All Rights Reserved

    Available Formats

    DOCX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    This document is a draft submitted by Aastha Singh Rajput to their professor, Ms. Nandita S. Jha, at Chanakya National Law University. The draft analyzes the position of promoters in India under the Companies Act, 2013. It introduces the concept of a promoter, their functions and obligations. The draft proposes to examine a promoter's relationship with the company and shareholders. It hypothesizes that a promoter molds the company but is neither an agent nor trustee prior to incorporation. The research methodology relies on doctrinal sources like books, journals and statutes.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    163 views3 pages

    Position of Promoters in India

    Uploaded by

    aastha
    This document is a draft submitted by Aastha Singh Rajput to their professor, Ms. Nandita S. Jha, at Chanakya National Law University. The draft analyzes the position of promoters in India under the Companies Act, 2013. It introduces the concept of a promoter, their functions and obligations. The draft proposes to examine a promoter's relationship with the company and shareholders. It hypothesizes that a promoter molds the company but is neither an agent nor trustee prior to incorporation. The research methodology relies on doctrinal sources like books, journals and statutes.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 3

    Position of Promoters in India: A critical analysis

    A Rough draft submitted in partial fulfilment of the course Corporate LAw I during
    the Academic Session 2019-20, 7th Semester

    SUBMITTED BY:

    NAME: Aastha Singh Rajput


    ROLL NO. 1502
    BATCH: B.A. LLB
    SUBMITTED TO: Ms. Nandita S. Jha

    CHANAKYA NATIONAL LAW UNIVERSITY


    Nyaya Nagar, Mithapur, Patna
    INTRODUCTION

    Promoters is a person who involves in the promotion the company. He is a person who does
    all necessary preliminary work, incidental to the formation or promotion of the company. To
    be a promoter one need not necessarily be associated with the initial formation of the
    company; one who subsequently helps to arrange floating of its capital will equally be
    regarded as a promoter.

    The promoters occupy an important position and have wide powers relating to the formation
    of a company. It is, however, interesting to note that so far as the legal position is concerned,
    he is neither an agent nor a trustee of the proposed company. But it does not mean that the
    promoter does not have any legal relationship with the proposed company. The promoters
    stand in a fiduciary relation to the company they promote and to those persons, whom they
    induce to become shareholders in it.

    A promoter is subjected to liabilities under the various provisions of the Companies Act.
    Under Section 26 of the Companies Act, 2013 lay down matters to be stated in a prospectus.
    A promoter may be held liable for non-compliance of the provisions of the section. Under
    section 34 and 35, a promoter may be held liable for any untrue statement in the prospectus to
    a person who subscribes for shares or debentures in the faith of such prospectus. However,
    the liability of the promoter in such a case shall be limited to the original allottee of shares
    and would not extend to the subsequent allotters.

    TENTATIVE CHAPTERISATION

    1. Introduction
    2. Concept of promoter
    3. Functions of promoter
    4. Pre-contractual and post contractual obligations
    5. Position of promoter in India in relation to company
    6. Conclusion
    OBJECTIVE OF STUDY
     To analyze the Position of promoter in Companies Act, 1956.
     To analyze the Position of promoter in Companies Act, 2013.

    HYPOTHESIS
     The promoter moulds and creates the company and under his supervision it
    comes into existence.
     A promoter is neither an agent nor a trustee of the company because it is a non
    entity before incorporation.
    RESEARCH METHODOLOGY
     Researcher relied upon doctrinal method e.g. books, internet, journals etc
     Researcher mainly relied upon library based study.

    SOURCE OF DATA COLLECTION


     PRIMARY SOURCE- provisions of statutes, precedents.
     SECONDARY SOURCE- websites, articles, books, journals etc.

    SCOPE OF THE STUDY


    Researcher’s work is wholly based on doctrinal method. This research will be useful for the
    purpose of publication.

    BIBLIOGRPAHY
    1. A.K. Majumdar, Dr. G.K. Kapoor, ‘Taxman’s Company Law’, 16th ed.
    2. Dr. Avtar Singh, Company Law, 17th ed.
    3. Dr. G.K. Kapoor, Company Law and Practice - A Comprehensive Text Book on Companies
    Act 2013, 23rd ed.

    You might also like