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Showing posts with the label promoters of a company

PROMOTERS

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 Promoters  A company promoter is a person or a group of persons who come together to set up a business. A person who is engaged in the incorporation of the company. A promoter is the one who forms a company with a given object and sets it going by taking the necessary steps. In India, the promoters are governed by the Companies Act, 2013. Parameters to evaluate a promoter's involvement in small companies- Shareholding - Promoter holding signifies the percentage of shares that are held by the promoters of a company.  If promoters are investing, it shows that he is confident about the company. He behaves in the best interest of the company. INCREASING STAKE BY PROMOTERS IS POSITIVE Remuneration - The salary drawn by the promoter of the company is the key parameter to be looked upon. It becomes important to identify the companies where promoters are gifting themselves sky-high salaries. Dividend  - Dividend reinvesting is a great idea. It means promoters are involved in long-term v