What is meant by the term 'Promotion'? Discuss the legal position of promoters with respect to a company promoted by them.

Explanation

Promotion of a Company is the first stage in the formation of a company. It involves conceiving a business idea and taking an initiative to form a company so that it can give shape to the available business opportunity.


The legal positions of promoters concerning a company are as follows-



• Promoters undertake various activities to get a company registered and get it to the position of commencement of business. But they are neither the agents nor the trustees of the company.



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