promoter

A person who devises a plan for a business venture; one who takes the preliminary steps necessary for the formation of a corporation.

Promoters are the people, who, for themselves or on behalf of others, organize a corporation. They issue a prospectus, obtain stock subscriptions, and secure a charter. Promoters stand in a fiduciary relationship to the proposed company and must act in Good Faith in all their dealings for the proposed corporation.

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promoter n. a person who puts together a business, particularly a corporation, including the financing. Usually the promoter is the principal shareholder or one of the management team and has a contract with the incorporators or makes a claim for shares of stock for his/her efforts in organization. Most states limit the amount of "promotional stock" since it is supported only by effort and not by assets or cash. (See: promotional stock)

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promoter noun  advocate, aider, auctor, backer, benefactor, encourager, enterpriser, fautor, financial backer, financier, founder, organizer, organizer of business enterprises, organizer of commercial enterprises, patron, planner, prime mover, publicist, sponsor, supporter

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See also: abettor, advocate, backer, benefactor, coactor, conspirer, developer, disciple, partisan, patron, sponsor