Explain the following:
(a) Insurance underwriter
(b) Promoters
(c) Auctioneer
(d) Factor
(e) Broker.
Explanation
(a) Insurance underwriter: An underwriter is one who insures against marine and other risks. He gives his name to an insurance policy as a guarantee of payment of a specified amount in the event of a loss. Underwriters usually operates in syndicates. Members who take the greatest part of the risks are referred to as leading underwriters.
(b) Promoters: They are people who form or float a public limited liability company and establish it as a going concern. Promoters are a class of people skilled in dealing with the preliminaries necessary to the formation of a company and who possess expert knowledge of the investing public. Promotes stand in a trust position to the company they promote and must not derive any personal gain from the work of promotion without first disclosing the fact to independent representatives.
(c) Auctioneer: This is a person licensed by the government to sell movable and immovable properties at a public auction. He sells through bidding for prices and earns commission for his services. He has a right of lien over the properties he has in his possession until payment and commission are paid. He must sell to the highest bidder
(d) Factors: He is a person who has in the ordinary course of his duties, authority to sell goods or cosign goods for the purpose of sale or to buy goods or to raise money for the security of the goods in his possession etc. A factor has a greater power than an ordinary agent. He also has right of lien for any amount due to him on the goods he holds for his principal.
(e) Broker: This is a person who acts as an agent on behalf of a principal. A broker does not take title to goods he deals in. He takes commission known as brokerage. He brings together those who intend to buy or sell.