Promoter Role: Assertion & Reason Analysis

This solution examines the Assertion (A) and Reason (R) regarding the definition of a company promoter.

Analyzing Assertion A

Assertion A states: "A promoter, invariably, is the one who has been associated with formation of the company."

The word "invariably" implies a constant and necessary prior association. While a promoter is fundamentally involved in the company's formation, the core definition revolves around the act of initiating and undertaking the formation process itself, rather than a pre-existing, invariable association.

Evaluating Reason R

Reason R states: "A promoter is the one who undertakes to form a company with reference to a given object and who takes the necessary steps to accomplish that purpose."

This statement accurately defines a promoter. It correctly identifies the promoter as an individual or entity who decides to form a company for a specific purpose and actively takes the required actions to bring the company into existence.

Conclusion on Statements

Comparing the statements:

• Assertion A is inaccurate due to the restrictive use of "invariably." The role is about initiating the formation, not necessarily a perpetual prior association.
• Reason R provides a correct and standard definition of a promoter's function.

Therefore, Assertion A is incorrect, while Reason R is correct.

Selecting the Correct Option

The analysis aligns with the option stating that A is not correct, but R is correct.