CS Ekta (Company Secretary) (309 Points)
18 February 2010
A Company, say XYZ Pvt. Ltd was acquired by Mr. A, Mr. B & ABC Pvt. Ltd (
So the current promoters of the Company will be Mr. A, Mr..B & ABC Pvt Ltd? Correct?
If now suppose, Mr. A sold his entire shareholding:
to a outsider, or
to a relative/group company
Sunil Gupta
(Service)
(181 Points)
Replied 18 February 2010
As far as I know, a promoter is 1 who do preliminery work for the formation of a company like filing Form 1A with ROC and preparing of AOA & MOA etc. A person who acquire (whether majority or minority) share in a company is not considered a promoter.
RAMANJU
(here to updating the knowledge)
(485 Points)
Replied 18 February 2010
Promoter meaning one who involve in formation of a Company. The acquirer can not be called as promoter.
CS Ekta
(Company Secretary)
(309 Points)
Replied 19 February 2010
I know that promotes are those who assumes the task of formation/ incorporation of the company.
However as in the case of listed company, the takeover code defines that promoter is the one who is in the control of the company. So with the change in control, the acquirer becomes the new promoter.
CAclubindia
