Promoters under CAMA 2020: sections 85 to 86
Chapter 4 defines a promoter and sets out the duties a promoter owes the company, including the rules on rescinding deals and on court relief.
Chapter 4 of Part B has 2 sections. Every section is listed below with its title.
Guides in this chapter
Key rules in this chapter
- A promoter owes the company a fiduciary duty and must account for any secret profit (section 86).
- A deal with a promoter can be rescinded unless approved after full disclosure by an independent board or the members (section 86(3)).
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Source: the Companies and Allied Matters Act 2020 as published in the Official Gazette.