question.jpgIn Business Law

What is a promoter?

Some states refer to an incorporator as a promoter. An incorporator is the person or entity in charge of setting up the corporation and filing the articles of incorporation with the state of incorporation. When an attorney is hired to set up a corporation, they generally take on the role of incorporator. An incorporator may have to do some preliminary things such as gathering the initial investors and investments that are going to be used for setting up the corporation. In addition, the incorporator will definitely have to do things like prepare and file the articles of incorporation and select the initial board of directors.

The incorporator generally has broad powers up until the directors assume management of the corporation. Once the directors take over, the incorporator basically no longer has any power or management ability left.