Tag Archives: promoters


Four Stages of a Business Idea to Be Undertaken by Promoters

Before a company (Co) comes into existence, the new business idea undergoes some stages and procedures. These initial stages of formation of any company are termed as promotion. There are people who are involved in executing these stages before a company can commence its operations. These persons are called the promoters.
Note that not all types of companies undergo all these stages. Some start operating only after undergoing two stages as the case with a private company and public company. These two companies don’t have a share capital. A public Co limited with a share capital has to undergo all the four stages before it’s incorporated to commence its specific purpose stated in the memorandum of association. Gw. Gerstenburge defines promotion of a company as, “the discovery of business opportunity and the subsequent organization of funds, property and managerial ability into a business concern for the purpose of making profits …