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DIFFERENCES BETWEENPROMOTERS AND

MANAGEMENTBY 

AKSHAYA A

SIDDHARTH H POPAT

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PROMOTERA promoter conceives an idea for setting-up a

particular business and performs variousformalities required for starting a company.

A promoter may be a individual, rm,association of persons or a company.

Defnition:

“A promoter is the one, who undertakes toform a company with reference to a givenobject and sets it going and takes thenecessary steps to accomplish that purpose.

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CHARACTERISTICS OF A

PROMOTER!. A promoter conceives an idea for the setting-

up a business.

". #e makes preliminary investigations andensures about the future prospects of thebusiness.

$. #e brings together various persons who

agree to associate with him.%. #e prepares various documents and gets the

company incorporated.

&. #e raises the required nances.

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LEGAL POSITION OF PROMOTER 'he company law has not given any legal

status to promoters. A promoter is neither anagent nor a trustee of the company because itis a non entity before incorporation

 'he promoter moulds and creates thecompany and under his supervision it comes

into e(istence. )t is the duty of the promoter to get

ma(imum benets for the company.

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MANAGEMENTManagement in businesses and organi+ation

s is the function that coordinates the eorts ofpeople to accomplish goals and objectives byusing available resources eciently andeectively.

)n protable organi+ations, managementsprimary function is the satisfaction of a rangeof stakeholders.

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MANAGEMENT/anagement consists of si( functions0forecasting

planningorgani+ing

commanding

coordinating

controlling

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MANAGEMENT LEELSTo!

 'he top consists of the board of directors ,

president, vice-president, 123s and othere(ecutives.

Mi""#e

1onsist of general managers, branch

managers and department managers.Lo$e%

1onsist of supervisors, section leaders,foremen, etc.

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DIFFERENCES BETWEEN PROMOTERS

AND THE MANAGEMENT& FO'NDER)n business, a founder is basically someone who

has founded the company.

 'he founders or the management come up with

the idea about what the company and businessshould be.

 'he management is responsible for coming upwith a business model as well as acquiring human

and other required resources.After the company is set up, the founder can run

it and act as the company4s 123 or 1hairman, aswell as sit on the company4s 5oard of 6irectors.

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A promoter, is someone who promotes thebusiness. )t is the promoter4s responsibility to

get people to invest money into a corporation. 'he role of a promoter is often fullled by an

investment banker, an underwriter, or a stockpromoter.

 )n order to raise money for the company4s initialinvestment, the promoter usually charges a fee. 'he promoter can also be paid in company stockor free entrance into the investment activity as

compensation for their work. 'he role of a promoter may also be fullled by

the founder himself.

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