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The formation of a company is a lengthy process. It involves several stages. The first stage in the process of formation is promotion. At this stage, the idea of carrying on a business is conceived by a person or by a group of persons called promoters. For incorporating a company various formalities are required to be carried out. The promoters perform these functions and bring the company into existence. A promoter conceptualizes the idea of a company and the purpose of its formation. The promoter acquires and invests the initial capital for the company. Once all the formalities are completed, the promoter hands over the authority to the directors. A promoter can be a person or a registered company as well.
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How many promoters are required to start a company?
minimum of two promoters should be there in a company
Do companies ordinance 1984 define promoters?
no .there is no such clause of promoters in companies ordinance 1984 it is a term defined outside ordinance.
How can promotore increase their share holding?
Promoters can increase their shareholding through several methods, including purchasing additional shares in the open market or via private placements. They can also engage in rights issues, where existing shareholders are given the opportunity to buy more shares at a discounted price. Additionally, some promoters may opt for share buybacks, allowing them to consolidate their ownership by reducing the total number of shares outstanding.
What do you mean by sales promoter?
The job of a sales promoter is a varied and challenging one. Sales promoters first need to identify those who would be interested in the product. They should then present the product and demonstrate its features and benefits. They can do so by using lectures, films, charts, presentations, etc. They must know the product or the service through-and-through, so that they will be able to answer every question and address every need. Ultimately, their goal is to make potential customers identify with the product and convince them to purchase it. Good sales promoters are highly sought after as they among the main factors that can push a company towards success. Therefore, it is often recommended that they be located and recruited by designated companies who specialize in hiring sales executives and sales staff and know what the needs for this profession is.
What services does the Brighton based Direct Sales Force Ltd offer?
Brighton based Direct Sales Force offer an outbound call centre and street promoters. They offer data entry, call handling, order processing, outbound sales and data sourcing.
How many promoters are required to start a company?
minimum of two promoters should be there in a company
Why is goodwill account debited when company issues shares to promoters?
Promoters are the pioneer investors of a company. It can be said that due to the promoters the company has come this far. So, promoters do deserve some credibility and they get goodwill. Goodwill is debited and the promoters capital is credited. Thus, the promoters don't bring in cash for their increased share. But if, the goodwill has already been created before and the promoters have got their share, promoters need to bring cash for additional share.
Religare Enterprises is led by promoters of which company?
Ranbaxy
Can promoters be called the agents or trustee of the company?
Yes Why Not
What about the company wealth line promoters pvt ltd?
iam investment
Who receives ipo money?
The promoters of the company that is going public through the IPO
Who is owner of tcs?
The TATAs are the promoters and the public including the TATAs are the owners as it is a public limited company.
Promoters are what?
What are the scientific word promoters?
Why goodwill account is debited while issuing shares to promoters of company?
When shares are issued to promoters in exchange for their contributions, such as intellectual property or business expertise, the goodwill account is debited to recognize the intangible value these contributions bring to the company. Goodwill represents the excess value over the tangible assets, reflecting the company's reputation and relationships. Debiting goodwill accounts in this context acknowledges that the promoters' involvement enhances the overall worth of the business, justifying the issuance of shares as compensation.
What are the requirements relating to promoters contribution?
Promoters are typically required to contribute a specified minimum amount of capital to the company's initial funding, which is often a percentage of the total capital requirements. This contribution is intended to demonstrate their commitment and confidence in the business. Additionally, regulatory frameworks may impose restrictions on how much of the company can be owned by promoters and may require disclosure of their contributions in the company’s financial statements. Compliance with these requirements helps ensure transparency and protect the interests of other shareholders.
Is contributed capital a financing or investing activity?
It is certainly a financing activity to the business or company. Just like debentures taken or any other source of financing. it is in a way money owed by the business to the promoters or shareholders to finance the company's activities. however, to the shareholders or promoters of a business it is an investing activity
What is the definition of Promoters in India?
In India, a promoterÊis defined as the one who undertakes to form a company. This person is the one who takes the necessary steps to accomplish that purpose of the company's project.Ê
