Promoter Legal Meaning and Definition

Here is a simplified definition of the legal term Promoter.

Promoter (noun):

A promoter is an individual or organization that starts or helps start a business, corporation, or other enterprise. Their duties often involve planning the business idea, gathering the necessary funds (often referred to as capital), and setting up the overall structure or management of the new company. Promoters can potentially be significant shareholders or play a major role in the management of the new venture. In return for their efforts, promoters sometimes receive shares known as "promotional stock". This type of stock is typically limited because it is backed by the promoter's work and contributions rather than financial assets or cash.