Explain the ways in which promoters can be remunerated.

In law, promoters are not entitled to remuneration for incorporating a company for the simple reason that the company did not engage their services. However, promoters may be rewarded in other ways:
• acting as commission agents.

• being appointed the first directors of the company.
• being afforded the opportunity to take up extra shares at par value after market value has risen.
• being offered deferred or founders or management shares.
• upon disclosure, a promoter is free to sell overvalued assets to the company for a profit.
• upon, disclosure a promote is free to sell overvalued assets to the company is return for fully paid shares of the company.

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