A promoter owes a fiduciary duty to the corporation and to its prospective investors.This implies that:

A) a promoter is an agent of the prospective corporation.
B) prospective investors in the business can control actions of a promoter.
C) a promoter may engage in intrinsically fair transactions with the corporation.
D) a promoter is an agent of the prospective investors in the business.

Fiduciary Duty

A legal obligation of one party to act in the best interest of another. The fiduciary relationship is noteworthy for involving a trust and confidence between the fiduciary and the principal.

Prospective Investors

Individuals or entities that are considering the possibility of investing in a particular opportunity but have not yet committed.

Promoter

An individual or company responsible for organizing or founding a new enterprise, especially by raising capital, securing partnerships, and navigating legal requirements.