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Promoter of private company

deepakshi jain (intern) (65 Points)

02 January 2016

is all shareholders of private company are termed as promoter?

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CA Devesh Bisht (Chartered Accountant) (258 Points)
Replied 02 January 2016

Hi ! Refer sec 2(69) of Companies Act 2013 �promoter� means a person�(a) who has been named as such in a prospectusor is identified by thecompany in the annual return referred to in section 92; or(b) who has control over the affairs of the company, directly or indirectlywhether as a shareholder, director or otherwise; or(c) in accordance with whose advice, directions or instructions theBoard of Directors of the company is accustomedto act:Provided that nothing in sub-clause (c) shall apply to a person who is actingmerely in a professional capacity;