Formation of Joint Stock Company: Promotion and Promoters of The Joint Company and Types of Promoters

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Promotion and Promoters of the Joint Company

Types of Promoters

Types of promoters

Types of Promoters

Types of promoters

Professional Promoters

  • Specialists in promoting new business ventures.

  • They do it on a whole-time basis as their occupation or profession.

  • They initiate all the steps in establishing new enterprises and find out the persons who can finance it.

  • They pass on the management to their owners or shareholders and then move to another new venture.

Financial Promoters

  • Promoters float companies only during favorable conditions in the securities market.

  • They have financial capacity and look forward to opportunities for new investment.

Technical Promoters

  • Promoters are technical experts in different fields.

  • They make use of their specialized knowledge, experience and training in promoting new business.

  • They generally charge fees for their services.

Entrepreneurial Promoters

  • People, who conceive new ideas of business, take necessary steps to set up the business unit to give it a shape and ultimately control and manage it.

  • Most promoters in India like Tata, Birla, and Ambani’s etc.

Specialized Institutions

  • Certain financial institutions which provide financial assistance and guidance in launching new ventures.

  • Collaborate with new entrepreneurs to promote new business.

  • Provide management and technical expertise to the existing enterprises.


  • Both the central and state governments also act as promoters in most cases where the new business is floated.

  • Either in public sector or joint sector which involve huge amount of capital and risk.

  • HMT, ONGC, SAIL, BHEL are examples of units set up by the government.

Examples of units set up by the government

Examples of Units Set up by the Government

Examples of units set up by the government

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