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Discussion > Corporate Law > Pvt ltd >

Definition of Promoter of a private limited company

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[ Scorecard : 43]
Posted On 06 May 2010 at 08:41 Report Abuse

What is the meaning of being a 'PROMOTER' of a private limited company?

I have seen this position being used by founders of some companies,

Is promoter a valid category for directors as per company law? Does law provide any special provisions for promoters?

Can promoters veto board decisions?

can they be independent or non-executive?


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CS Mayur Buha
Company Secretary

[ Scorecard : 238]
Posted On 06 May 2010 at 10:01

What is the meaning of being a 'PROMOTER' of a private limited company?

Ans: 'promoter' means a subscriber of MoA and AoA for private co.

Is promoter a valid category for directors as per company law? Does law provide any special provisions for promoters?

Ans: Yes promoter can become director of the company. yes law provides referance for promoters but not specific section for only promoter.

Can promoters veto board decisions?

No, no can excercise veto in Board meeting/decisions.

can they be independent or non-executive?

Promoter is considered executive



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CS Ankur Srivastava
Company Secretary & Compliance Officer

[ Scorecard : 14891]
Posted On 06 May 2010 at 13:17

 

Originally posted by : CS Mayur Buha

What is the meaning of being a 'PROMOTER' of a private limited company?

Ans: 'promoter' means a subscriber of MoA and AoA for private co.

Is promoter a valid category for directors as per company law? Does law provide any special provisions for promoters?

Ans: Yes promoter can become director of the company. yes law provides referance for promoters but not specific section for only promoter.

Can promoters veto board decisions?

No, no can excercise veto in Board meeting/decisions.

can they be independent or non-executive?

Promoter is considered executive

 PROMOTER DIRECTOR MAY OR MAY NOT BE EXECUTIVE DIRECTOR.




termpapers
Manager

[ Scorecard : 30]
Posted On 06 May 2010 at 17:59

What is the meaning of being a 'PROMOTER' of a private limited company?

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AP Rao
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[ Scorecard : 43]
Posted On 08 May 2010 at 09:05

Thank you Mayur and Ankur for your valuable comments. It appears that Promoter term holds an equal meaning as that of a Director. Because a Director is also subscriber of AoA and MoA.

However, common use of Promoter seems to indicate a more permanent nature of the association with the company - implying Ownerhip rights above board of directors.

Is this notion supported by law?




ashish
a

[ Scorecard : 24]
Posted On 28 May 2013 at 18:19

Can a Promoter or Subscriber to the Memorandum of the Private limited Company, who is now director, removed from directorship by other directors of the company?

If so can anyone give us the procedure.



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