PROMOTERS Prior to the decision in Twycross v Grant, there was no precise definition of the term “promoters”. The reasoning was that adopting a precise definition could make the company susceptible to fraud and this could leave adverse effect on so many people. However, in Twycross v Grant an attempt was made to give a precise definition. Cockburn CJ described a promoter as one who undertakes to form a company with reference to a given project and to set it going, and who takes the necessary steps to accomplish that purpose. However, the term promoter does not include those who act merely in professional capacity acting on the instructions of a promoter for example a solicitor or an accountant. In this case, it is obvious that Candy and Caramel are promoters by setting up the business and entering into pre-incorporation contract.
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