CORP · S03PromotionAsked in 6 of 7 papers (Jun ’22, Dec ’22, Jun ’23, Dec ’23, Jun ’24, Jan ’25)
A person is neither named as promoter nor appointed a director and holds no shares, but binding governance rights let that person appoint most directors and control company affairs. Under the Companies Act, 2013, which conclusion is best?
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APromoter status is impossible because only a shareholder or director can exercise statutory control.
BThe control limb can make the person a promoter even without naming, shares or directorship.
CThe person becomes a promoter only after the company issues a prospectus naming that person.
DControl is irrelevant unless the Board follows merely professional advice from the person.
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