Which of the following are the functions of a promoter?

Decides name of a company
Nomination of directors
Settles the details of memorandum and articles
All of these

The correct answer is D. All of these.

A promoter is a person

who takes the initiative in founding a company and assumes the risk of starting it. The promoter is responsible for all the pre-incorporation activities, such as deciding the name of the company, drafting the memorandum and articles of association, and raising capital. The promoter also nominates the directors of the company and settles the details of the memorandum and articles.

Here is a brief explanation of each option:

  • Option A: Decides name of a company. The promoter is responsible for deciding the name of the company. The name must be unique and not misleading. It must also be registered with the Registrar of Companies.
  • Option B: Nomination of directors. The promoter is responsible for nominating the directors of the company. The directors are responsible for managing the company on behalf of the shareholders.
  • Option C: Settles the details of memorandum and articles. The promoter is responsible for drafting the memorandum and articles of association of the company. The memorandum and articles are the governing documents of the company. They set out the company’s name, objects, capital structure, and management structure.

I hope this helps!

Exit mobile version