<P> A corporate promoter is a firm or person who does the preliminary work incidental to the formation of a company, including its promotion, incorporation, and flotation, and solicits people to invest money in the company, usually when it is being formed . An investment banker, an underwriter, or a stock promoter may, wholly or in part, perform the role of a promoter . Promoters generally owe a duty of utmost good faith, so as to not mislead any potential investors, and disclose all material facts about the company's business . </P> <P> Generally, promoters are in a fiduciary relationship with the company and its investors and shareholders, and must avoid conflicts of interests and exercise reasonable care in performing their duties . They must refrain from self - dealing or other types of abuse to take advantage of their position as a promoter . Self - dealing occurs, for example, when a promoter unfairly profits from the conduct of business with the company by charging higher prices for the goods they sell to the company than it would otherwise pay . </P> <P> A promoter can be a shareholder in the promoted company . If the promoter is the only shareholder, the company may, in compliance with the rule of the United States Securities and Exchange Commission (SEC) and similar rules in other jurisdictions, need to disclose the information prior to selling shares to the public . </P> <P> The fiduciary duties of promoters include: </P>

Who is a promoter according to company law