What are the duties of a promoter?

1. To disclose all the material facts relating to the promotion of the company.
2. It is the duty of the promoter to disclose all the profit, otherwise the contract on which the profit stands will be cancelled.
3. All the material facts relating to the purchase of assets should be disclosed.
4. A promoter is not allowed to derive a profit from the sale of his own property, to the company unless all facts are disclosed.

It is the duty of the promoter to see that there is no untrue statement in prospectus or statement is lieu of prospectus.