What Does a Corporate Promoter Do?

The company sponsor is also called the company founder. The person responsible for setting up the company. It is generally believed that the company sponsor must be a person involved in the company registration process or a person involved in raising capital. The establishment of a joint-stock company, depending on the size, requires at least 7 people, or other odd numbers to be the promoters. There is no restriction on the nationality of the promoters, but foreign company law generally stipulates that more than half of the promoters must be citizens of nationality and settle in the country. The qualifications of the promoters are restricted. They can be natural persons or legal persons, but natural persons must have the capacity to act, while legal persons are the initiators and the enterprise is the limit. The remaining corporate legal persons cannot be the initiators because such legal persons They are not for profit, and are not suitable as promoters in nature. ^[1]

Company sponsor

The company sponsor is also called the company founder. The person responsible for setting up the company. It is generally believed that the company sponsor must be a person involved in the company registration process or a person involved in raising capital. The establishment of a joint-stock company, depending on the size, requires at least 7 people, or other odd numbers to be the promoters. There is no restriction on the nationality of the promoters, but foreign company law generally stipulates that more than half of the promoters must be citizens of nationality and settle in the country. The qualifications of the promoters are restricted. They can be natural persons or legal persons, but natural persons must have the capacity to act, while legal persons are the initiators and the enterprise is the limit. The remaining corporate legal persons cannot be the initiators because such legal persons They are not for profit, and are not suitable as promoters in nature. ^[1]

Article 76 The establishment of a company limited by shares shall meet the following requirements:

(1) The number of promoters meets the quorum;

(2) The share capital subscribed and raised by the promoters has reached the minimum legal capital limit;

(3) the issuance and preparation of shares are in compliance with legal requirements;

(4) The promoters formulate the company's articles of association and adopt the method of fundraising and adopt the establishment conference;

(5) Having a company name and establishing an organization that meets the requirements of a company limited by shares;

(6) Have a company domicile.

Article 77 The establishment of a company limited by shares may take the form of initiation or solicitation.

Initiation of establishment refers to the establishment of a company by the promoters subscribing for all the shares that should be issued by the company.

Proposal establishment refers to the establishment of a company by the promoters subscribing for a part of the company's shares to be issued, and the remaining shares are publicly raised to the public or from specific objects.

Article 78 To establish a joint stock limited company, there should be two or more and two hundred or less as the promoters, of which more than half of the promoters must have a domicile in China.

Article 79 The promoters of a company limited by shares shall be responsible for the preparation of the company.

The promoters should sign a promoter agreement to clarify their respective rights and obligations in the establishment of the company.

Article 80 Where a company limited by shares is established by way of sponsorship, the registered capital shall be the total share capital subscribed by all promoters registered with the company registration authority. Until the shares subscribed by the promoters are fully paid, no shares can be raised from others.

Where a company limited by shares is established by way of fundraising, the registered capital shall be the total paid-up share capital registered with the company registration authority.

Where laws and administrative regulations require the State Council to decide otherwise on the actual payment of the registered capital of a company limited by shares and the minimum amount of registered capital, such provisions shall prevail.