The promoter enter into preliminary contracts with vendors and make arrangements for the preparation,advertisement and the circulation of the prospect.He must not make any secret profit out of the promotion of the company.He must make full disclosure to the company of all relevant facts incliding to any profit made by him in transaction with the company.Bottom line...the Promoters must make a decision regarding the type of company i.e a public company or a private company or unlimited company,etc.accordingly prepare the documents for incorporation of the company.In order for a company to be registered it have to go through the memorandum of association.Which is the constitution or charter of the company and contains the powers of the company.No company can be registered undered the Companies Act,1956 without the memorandum of association.It's more like...The purchase price(The Promoter),and The registered capital(The Memorandum).
