In accordance with SEBI regulations, which of the following is considered a "promoter"?

Shareholders who invest in the company.

Employees who work in senior management positions.

Individuals who are in control of the issuer.

Independent consultants who provide occasional advice.

What is the definition of a "promoter" as per Section 2(69) of the Companies Act, 2013?

A person who provides professional advice to the Board of Directors.

A person named in the annual return of the company.

A person with control over the affairs of the company, directly or indirectly.

A person who merely invests in the company's shares.

When can a director, officer, or employee of a company be considered a promoter?

When they hold a position of authority.

When they provide professional advice to the company.

When they have control over the company's operations.

When they invest in the company's shares.

What is the primary fiduciary duty of a promoter towards the company?

Maximizing profits for the company's shareholders.

Disclosing all material facts, including secret profits.

Providing expert advice to the Board of Directors.

Ensuring compliance with legal regulations.

Which case established the concept of a promoter's fiduciary duty and accountability for secret profits?

Whaley Bridge Calico Printing Co. v. Green (1880)

Lagunas Nitrate Co. v. Lagunas Syndicate (1899)

What is the consequence if a promoter fails to disclose a secret profit made during the promotion of a company?

The promoter may be required to resign from the company.

The promoter may be subject to criminal charges.

The company can rescind the contract or claim damages.

The company must pay the promoter an additional fee.

Under what circumstances can a promoter sell his own property to the company without making full disclosure?

When the property is acquired after the company's incorporation.

When the property was not acquired for the purpose of sale to the company.

When the property is not mentioned in the company's articles of association.

When the property is sold at a fair market price.

What legal action can be taken against a promoter for making misleading statements in a prospectus?

The promoter can be fined by the company.

The company can file a civil lawsuit for damages.

The promoter can be disqualified from acting as a director.

The company can issue a warning to the promoter.

In what situation can a promoter be personally liable to third parties upon contracts made on behalf of the intended company?

When the company has ratified the contract after incorporation.

When the promoter has received consent from the company's Board of Directors.

When the promoter has acted in a professional capacity.

When the company has not accepted the contract.

What is the consequence of a promoter's failure to cooperate with the Company Liquidator during the winding-up process?

The promoter will be disqualified from acting as a director in the future.

The promoter will be required to surrender any secret profits.

The promoter will face criminal charges and imprisonment.

The promoter will be fined by the regulatory authorities.

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