In company law, who is generally called a promoter?
Correct answer: D. A person who forms and organizes a company
- A. A person who manages the company after liquidation
- B. A person who audits the company accounts
- C. A person who lends money to the company
- D. A person who forms and organizes a company
Explanation
A promoter takes the preliminary steps to form and establish a company, such as preparing documents and arranging capital. An auditor examines accounts, while a lender provides finance and a liquidator handles winding up.
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About Company Law Basics
Company law covers incorporation, separate legal personality, limited liability, shares, the memorandum and articles of association, and the powers and duties of directors. It also includes shareholder meetings, resolutions, company records, audit, winding up and the differences between a registered company, partnership and sole proprietorship.
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