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(i) Discovery of the idea
(ii) Detailed Investigation
(iii) Assembling the proposition
(iv) Financing
(v) Presentation of the Proposition.
A company is generally brought into existence by a person, or a number of people, who are commonly known as 'Promoters.'
The term 'promoter' has been defined by various learned Judges, but the gist of all the definitions, is that any individual, syndicate, association or partnership, etc., which puts into motion the machinery by which a company is brought into existence may be described by that designation.
These promoters generally get the original documents like the memorandum and the articles, as well as the prospectus, prepared; take an active part in the selection of directors, and in the purchase of property by the company for the purpose of carrying on its proposed business; and generally speaking float or assist in floating a company, or do any one or more of these operations.
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