5/11/2011 Examples of promoters To arrange for someone to be a director To arrange to place shares To negotiate preliminary agreements To arrange for existing company to raise new capital from the public(but with exceptions) Examples of promoters To prepare prospectus(s 40(5)) Liable for untrue statements in the prospectus to the subscribers for shares or debentures Exceptions to this liability rule No joint liability between promoters 35/11/2011 3 5 Examples of promoters • To arrange for someone to be a director • To arrange to place shares • To negotiate preliminary agreements • To arrange for existing company to raise new capital from the public (but with exceptions) 6 Examples of promoters • To prepare prospectus (s 40(5))  Liable for untrue statements in the prospectus to the subscribers for shares or debentures  Exceptions to this liability rule  No joint liability between promoters