nature of recivable in corporate

May 29th, 2015
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INCORPORATION OF THE COMPANY. PROMOTER • Promoter is a person who is involved in the formation of the company. • He is not the agent of the company as the company has not come into existence.

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INCORPORATION OF THE COMPANY.PromoterPromoter is a person who is involved in the formation of the company.He is not the agent of the company as the company has not come into existence.The promoters should not make a secret profit from the company.He can make a profit IRO any transaction with the company ONLY if he makes a full and fair disclosure of such profit to the BOD.If the company becomes aware of the secret profit made by the promoters after entering into the contract, the company canCancel such contract and recover the secret profit made by the company.The company can also sue the promoters for breach of contract.Promoters right to remunerationPromoters do not have any right to remuneration or recover any expenses incurred IRO incorporation of the company.Even if the AOA provide for payment of remuneration or reimbursement of expenses, it is not binding on the company.Remuneration to the promoters can be paid in any of the followings ways.Issue shares at discountPaying lumpsum remunerationPaying commission to promoters on purchase of any property purchased by the company.Payment of commission to promoters on shares sold by the company.STEPS FOR INCORPORATION OF A COMPANY There must be a an association of persons interested in forming a company. Minimum 2 members are required to make a private company and 7 for a public companyThe AOP should have a common objectThe object should be lawfulThe requirements of the companys act should be ful

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