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Simple English definitions for legal terms
promoter
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A quick definition of promoter:
A promoter is someone who starts a new business or project. They are the ones who come up with the idea and get things started. They encourage others to join in and help make the idea a reality. In corporate law, a promoter is the person who takes the first steps to create a new company. They do the work to get the company started, and then others take over to run it.
A more thorough explanation:
A promoter is someone who encourages or incites a certain behavior. In corporate law, a promoter is the person who takes the initiative to create or organize a business venture. They are the founder or organizer of a corporation or business venture.
For example, if someone has an idea for a new business, they may act as the promoter and take the necessary steps to incorporate the business. This could include finding investors, creating a business plan, and registering the business with the government.
The promoter is not always the incorporator of the corporate entity. The incorporator is the person who signs the certificate of incorporation, which officially creates the corporation. However, the promoter's actions are usually ratified by the formation of the board of directors and their subsequent conduct.
Overall, a promoter is someone who takes the lead in creating a new business venture and encourages others to get involved.