They are the persons who acting alone or with another take initiative in founding and organising the business or enterprise of the issuer and receive consideration therefor.

They are the persons who acting alone or with another take initiative in founding and organising the business or enterprise of the issuer and receive consideration therefor.

• A. Promoters
• B. Corporators
• C. Directors
• D. Stockholders

Answer: (A)

Promoters are the initiators who take the lead to found and organize the issuer’s business, acting alone or with others, and they typically receive compensation for those efforts. They identify the business idea, arrange financing, negotiate contracts, and take the necessary steps to bring the enterprise into existence, often before the company is legally formed. Because they operate pre-formation, promoters may be compensated through commissions or by receiving shares in the new entity as consideration for their services. Their role is distinct from those who will later manage or own the company; once the corporation is formed, its acts can ratify or adopt the promoters’ pre-incorporation activities, though promoters may remain liable to third parties for those early contracts unless novation or careful legal arrangements occur. This makes promoters the best fit for the description, as it emphasizes initiating and organizing the business and receiving compensation for that work. Corporators are the individuals who file to create the company and become its initial members, directors are the managers, and stockholders are the owners.

Promoters are the initiators who take the lead to found and organize the issuer’s business, acting alone or with others, and they typically receive compensation for those efforts. They identify the business idea, arrange financing, negotiate contracts, and take the necessary steps to bring the enterprise into existence, often before the company is legally formed. Because they operate pre-formation, promoters may be compensated through commissions or by receiving shares in the new entity as consideration for their services. Their role is distinct from those who will later manage or own the company; once the corporation is formed, its acts can ratify or adopt the promoters’ pre-incorporation activities, though promoters may remain liable to third parties for those early contracts unless novation or careful legal arrangements occur. This makes promoters the best fit for the description, as it emphasizes initiating and organizing the business and receiving compensation for that work. Corporators are the individuals who file to create the company and become its initial members, directors are the managers, and stockholders are the owners.