Study on Alasting Relationship Between Promoters and Other Share Holders

Abstract

Abstract: This research paper delves into the intricacies of promoters, specifically focusing on the conflicts that may arise when promoters hold a stake in the companies they are instrumental in forming. The study aims to analyze the legal and ethical implications of such conflicts, the impact on corporate governance, and possible solutions to mitigate these conflicts. It explores various cases and legal frameworks, offering insights into the consequences of promoters- other shareholder's relationship when arises a conflict. shareholders' inadequate due diligence, the competition between other shareholders and promoters for control of the shareholder’s firm, and the promoters' lack of emphasis on corporate governance are some of the contributing causes to these disputes. this paper also aims to implicate the role, importance, legal responsibilities, conflicts of interest, impacts, ethical considerations, mitigating conflicts, taking regulatory measures, related case law, and the role of promoters in corporate governance. This research leads to the issues that arise between promoters and the other shareholders that cause a heavy impact on corporate governance but will burst out silently. other shareholders-promoter disagreements are not common today. For a long time now, they have raised worries for both promoters and shareholders. Let's have a brief explanation in this research paper.