The person who take initiative in the formation of Company are called Promoter or company.They prepare certain legal documents and take all necessary steps for registration of a company.
Relevant Provision:
Section 2(50) of the Companies Act 2017.
According to Companies Act 2017:
Promoter means a person :
who has been named as subscriber in the Memorandum of Association.
who has been named as such in prospectus.
who has control over the affairs of the Company directly or indirectly whether a shareholder,director or otherwise .
Duties and Functions of Promoter:
Promoters are the ones who came up with the idea of starting the business.
Promoters makes investigation about the demand of product.
Promoters find out the person who are willing to sign the MOA.
Promoters nominate bank auditors legal advisors of the Company.
Promoters prepares essential documents for the formation of Company.
Promoters pay preliminary expenses at the time of registration of the Company.
Promoters can enter into contracts with third parties on behalf of the proposed Company.