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Definition of Promoter

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

Aman Mahajan

CA Inter

18K+

07-Jan-21 12:41

13

Answers (5)

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


Suraj Lakhotia

Suraj Lakhotia

Admin

07-Jan-21 16:07

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?


Aman Mahajan

Aman Mahajan

CA Inter

18K+

07-Jan-21 17:59

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.


Suraj Lakhotia

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

Siva Kumar

CA Inter

715

07-Jan-21 21:43