Promoters of unlisted companies

 

A Company, say XYZ Pvt. Ltd was acquired by Mr. A, Mr. B & ABC Pvt. Ltd (Co. owned by Mr. A & Mr. B).

So the current promoters of the Company will be Mr. A, Mr..B & ABC Pvt Ltd? Correct?

 

If now suppose, Mr. A sold his entire shareholding:

to a outsider, or

to a relative/group company

 

Will there be any change among promoters in either of the cases?

Replies (3)

As far as I know, a promoter is 1 who do preliminery work for the formation of a company like filing Form 1A with ROC and preparing of AOA & MOA etc. A person who acquire (whether majority or minority) share in a company is not considered a promoter.

Promoter meaning one who involve in formation of a Company. The acquirer can not be called as promoter.

I know that promotes are those who assumes the task of formation/ incorporation of the company.

However  as in the case of listed company, the takeover code defines that promoter is the one who is in the control of the company. So with the change in control, the acquirer becomes the new promoter. 

 

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