A person becomes a promoter of the company from the date he takes his part in the making or the formation of the company. there is a Land mark case law regarding this topic as below:
Gluckstein v Barnes
The syndicate, who consented to consolidate to buy the property with the goal to pitching it in future to an organization to be framed by them. The court held they were promoters from the date they set the target.
Then again where a man buy a property with the aim to get it for himself and later chooses to pitch it to it to the organization he framed. For this situation he won't be promoter from the date he acquired the property yet from the date he chose to pitch the property to the organization.
another Question arises that why from the date from which a person becomes a promoter is of very importance? the answer to the question is:
The date whereupon a man turns into a promoter is of most extreme significance in light of the fact that once the relationship has emerged the promoter is settled in a guardian relationship towards the company.