A promoter of a company is a person who undertakes to form a company with reference to a given project, to set it going. He takes the necessary steps to accomplish that purpose.
For example, you and four other friends decide to set up a company to deal with importing and exporting fashion wear. They all appoint you to get the company started. Details of the company are all decided. i.e. the initial share capital, the terms of the constitution and other details of the company. It is your responsibility to get the company incorporated. Thus, you look for a corporate service provider to kick start the incorporation process and to get what was decided in place. Therefore, you are a promoter of the company.
Also, a promoter may or may not be an eventual shareholder or director of the company.
A promoter has a duty of care and owes fiduciary duties to the company. Therefore, the promoter needs to ensure that all dealings are in the best interests of the company.
When in doubt, seek legal advice or consult an experienced ACRA Filing Agent.
The editorial team at Singapore Secretary Services
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