Multiple choice

Which of the following statements is/are correct: a. Promoter is not the trustee of the company but he stands in a fiduciary relationship. b. Promoter can select any name for the company being promoted without approval from any authority. c. Both a public and a private company can commence business after obtaining Certificate of In corporation.

  1. only a

  2. only b

  3. only c

  4. both b and c

  5. a, b and c
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

This is the correct option. Promoter is not the trustee of the company but he stands in a fiduciary relationship. A fidiuciary relationship is a relationship of utmost faith. A promoter should not carry out any activity which is against the interest of the company. For instance, a promoter should not make any undisclosed profits from the company being promoted.

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