Query on form 32 category

This query is : Resolved

Guest

Guest (Querist)

07 October 2013 Hi,

Someone may please reply, if possible:

Query 1

Kindly clarify me, why should we select CATEGORY as ‘PROMOTER’ in respect of an EXISTING private limited company.

Is there any shareholding percentage determines the Category as ‘Promoter’? That is, a director, who holds above 5%, 10%, 15%…………..shareholding

If any URL available, please share so that I will go through and learn.

Ans : ……………..

Thanks in advance for your replies.

Aalok Chhaperwal

Aalok Chhaperwal (Expert)
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07 October 2013 In the case of private ltd company, the appointed director shall be either promoter or professional....

If the person appointed, relates with promoter category then appointment is under promoter category otherwise professional.

Yes, Shareholding also determines the Promoter category, but it is not specific.

Ajay Mishra

Ajay Mishra (Expert)
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07 October 2013 Hi

The definition of Promoter is not given in Companies Act, 1956 so we take the help of other laws for defining the term promoter".

For this, you can take the help of Regulation 2(za) of SEBI(ICDR) Regulation 2009:

“promoter” includes:
(i) the person or persons who are in control of the issuer;
(ii) the person or persons who are instrumental in the formulation of a plan or programme pursuant to which specified securities are offered to public;
(iii) the person or persons named in the offer document as promoters:
Provided that a director or officer of the issuer or a person, if acting as such merely in his professional capacity, shall not be deemed as a promoter:

Provided further that a financial institution, scheduled bank, foreign institutional investor and mutual fund shall not be deemed to be a promoter merely by virtue of the fact that ten per cent. or more of the equity share capital of the issuer is held by such person;

Provided further that such financial institution, scheduled bank and foreign institutional investor shall be treated as promoter for the subsidiaries or companies promoted by them or for the mutual fund sponsored by them;

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