Can You Explain The Company Promoters And Their Functions?


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Company promoters and their functions:
The promoter is the business term. It is used to describe the person or persons who initially take all necessary steps to form a company with reference to a given object and set it going. The promoter may be an individual, a company, or a firm.

Classification of promoters:
Promoters may further be divided into three more categories:
Professional promoters, Occasional promoters and the Promoters.
They are described as follows in detail:-
1-Professional promoters
As the name signifies they are actually the persons who form or float the company as their profession. When the company is incorporated, they either get the commission or a fixed amount fore the formation of the company or get it going.

2- The occasional promoters:
Are those who undertake to form a company occasionally and takes the forming or floating of the company as their part time job.
3- The person who makes all the investigations, preparations and arrangements for incorporating a company are called promoters.
The professional promoters and the occasional promoters retire after the company is floated. The promoters, the third category, float the company for their own self interest and take active part for its successful operation.

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