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Tagged: Directors, Promoter, Share Holder
share holder is one who owns the shares of the company. Also one of the owner of the company.He has the rights to vote during an ordinance passed from the company
promoter is the one who promotes the company for futute developement of the company .
director is the one who has given all the power by the share holders of the company. He has all the rights to take any decision in the company
Share Holder:
Share holders are the owners of the company . They share the capital by investing in the company and they also enjoy the profit of the company .
Promoter :
Promoter is the one who promotes the company . They are not the owners of the company because at some cases they may sell and move out of the company incase of good returns
Director :
Director is captain of the company .They do have some shares invested in the company so at the end they play a dual role .
1. Share holders can be called as owners of the company. They are the ones who’ve invested in stocks of the company.
2. Promoter is a person who promotes the business idea; may not be categorized as owner of the company and may not hold shares of the company as well.
3. Director is the person who runs the business and has, usually, the highest % of shares in company.
Every person who holds shares in a company are called as share holders. The share holder’s role is to act as owner of a company and have right to vote in company meetings and also receive dividend when declared.
The promoter are those who conceive the idea of the business, form and incorporate the company. The promoters role is to take necessary steps for formation of the company and he has right to enter into preliminary contracts. The promoters have no rights and duties attached after incorporation of the company.
The directors are those who are elected by the member to direct, control and supervise the affairs of the company. The directors role is to manage day to day affairs of the company and have right to take decision on behalf of the members of the company.
Share Holder: The one who owns the shares of the company either through IPO or through Secondary Markets. He is considered as one of the owners of the company.
Promoter: The one who promotes the idea to start the business of the company.
Director: The one who is running and taking care of the company. He is not the owner of the company, but in most of the cases, Directors do have some shares of the company he is working with.
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