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Definition of Promoter

Corporate & Other Laws

The definition of promoter excludes a person who is acting merely in a professional capacity. However, if a professional (say a CA) acts as both: As a professional and as a founder. Will he be considered a promoter?

Aman Mahajan

CA Final

★ 19K+

07-Jan-21 12:41

324

Answers (5)

Yes. Generally such situations are to be avoided because of conflict of interest.

CA Suraj Lakhotia

Admin

07-Jan-21 16:07

CA Suraj Lakhotia Admin

Yes. Generally such situations are to be avoided because of conflict of interest.

What conflict of interest could arise with a CA being a promoter?

Thread Starter

Aman Mahajan

CA Final

★ 19K+

07-Jan-21 17:59

Thread Starter

Aman Mahajan

What conflict of interest could arise with a CA being a promoter?

CA Can be a promoter. But if he is acting in professional capacity at the same time, it could cause conflict of interest.

CA Suraj Lakhotia

Admin

07-Jan-21 18:02

Incase CA is acting as a promoter. He shall not certify activities relating to such entity where he's a promoter and has to appoint others as professional. Is it correct?? Sir

Siva Kumar

CA Inter

★ 715

07-Jan-21 21:43

Siva Kumar

Incase CA is acting as a promoter. He shall not certify activities relating to such entity where he's a promoter and has to appoint others as professional. Is it correct?? Sir

Yes

CA Suraj Lakhotia

Admin

08-Jan-21 17:08