I can say that a promoter is a person who takes the first steps to form a company. To take all these steps there are no limits to the role and nature of the role of the promoters. They prepare various documents and take all necessary steps for company registration, whether a person is a promoter or not depends on the circumstances of each case. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get Original Essay According to the Companies Ordinance, 1984 and the Contract Act, 1872 does not describe the word "promoter" as a specific description and details of how attempts have been made in various judicial decisions. The members who contribute to the formation of the company are called promoters. The provisions of certain legal documents and all the steps required for company registration. They encourage responsible people to act as the first director of the company. According to the promoters' company ordinance 1984 is to receive preliminary expenses from the company, to receive compensation for their services, to receive the proportionate money from the promoters. The four main phases of company pre-establishment contracts: Promotion phase, Establishment phase, Share capital increase, Certificate of commencement of activity. Many types of promoters such as professional promoters, casual promoters and simple promoters. The promoter of the company has the obligation to fully disclose all material facts relating to the formation of the company, the best relationship between the promoters and a company is fiduciary personality. All this under certain conditions, such as the disclosure must be effective and express, it must be made to a group of people acting on behalf of the people and the group of people must be able to exercise independent judgment. A promoter is responsible for any undisclosed profits he may have made while setting up the company. The simple reality of incorporation is not affected by the promoter's contracts and the initial establishing company is not in such a position as to become a party to the creation contract entered into before incorporation and its name to its advantage. Four theories have been put forward as to how the company's liabilities might arise, including ratification, adoption, accepted continuing offer and renewal by the company based on mutual agreement of all contractual parties. Before the passing of the Companies Ordinance 1984, the position in Pakistan regarding pre-incorporation contract was comparable to the Common Law. This is a general rule of contract that when two consenting parties decide to enter into a contract with each other and the third party is not connected without the terms and conditions of performance and liability, then the company does not exist before its incorporation and the promoter signed the contract on behalf of the company as a third party. Promoters are commonly held individually liable for the pre-incorporation agreement. If a company does not approve and enter into a pre-incorporation contract under the Contracts Act, then the common law principle would apply and the promoter would be liable for breach of contract. In common law it is identified that the promoter rule is individually responsible for the pre-incorporation contract, the US laws much more innovative and effective to solve the problem of pre-incorporation contract. At common law, adoption and ratification after incorporation does not exempt the promoter from liability for the pre-incorporation contract. Please note: this is just an example. Get a customized document from our experts now. 1984.