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Ahtesh is the promoter to a company not yet incorporated. As promoter he bought two excavators on behalf of the company as the latter would be building and running a hotel. While the incorporation of the company is in process, another building contractor proposes him to rent the excavators for 5 days only for a total sum of Rs.100, 000. Ahtesh accepts and when the company is incorporated it ratifies the contract for the buying of the two excavators. Ahtesh however omits to mention the renting to the other building contractor.
(a) Explain who is a promoter according to law?
(b) Advise the company as to the possible actions and remedies that may be available against Ahtesh, if any.
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