What Are The Duties Of Promoters?


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Duties of the promoters:
The main duties of the promoters are summarized as follows:
1- To conceive the idea of floating the company.
2- To find out suitable persons who may sign the memorandum of association and are also willing to act as the first detectors of the company.
3- To select suitable names of the company and settle the amount and form of its capital, the kinds of shares to be issued the rights of various shareholders, etc. etc.
4- To select the bank where the account of the company is to be kept and also the auditors, legal advisers and brokers for the company.

5- To prepare a draft of the memorandum of association and prospect of the company and get it printed.
6- To submit to the registrar of joint stock companies all the documents required for the incorporation of the company.
7- To arrange for advertisement of prospect of the company in the newspaper.
8- To meet all the preliminary expenses for the forming or floating of the company.
9- To disclose fully all the material facts relating to the information of the company.
10- To arrange for the completion of the contracts with vendors managing agents and underwrites.
11- To receive remuneration from the vendors in the form of a commission on the sold property or get founder's shares fully paid up for the services rendered by them to the company.

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