- Meaning: A quorum is the minimum number of members who must be present at a meeting as required by law.
- Quorum for General meeting: In absence of any provision in the Articles –
For public company –any 5 person personally present.
For private company – any 2 person personally present.
Note- Articles may provide for larger quorum but not for shorter quorum.
- Rules relating to Quorum:
(i) Only members present in person are counted not the proxies.
(ii) Preference shares holders are not counted.
(iii) Joint holders are treated as single members.
(iv) A member present in two capacities as an individual member and as a trustee may be counted as two members.
(v) In case a company is the member of another company then the representative shall be treated as a member not as a proxy.
(vi) In case the president of India or Governor of state is member and sends representatives, such representative shall be treated as a member and not as a proxy.
- Course of action in case of quorum not being present at the general meeting [section 174]:
(i) If within ½ hour from the time appointed for holding the meeting the quorum is not present, the meeting if called upon the requisition of members, shall stand dissolve.
(ii) In any other case, the meeting shall be adjourned to the same day in the next week, at the same time and place or to such other day, time and place as the Board of Directors may determine and notify accordingly.
(iii) If at the adjourned meeting also, quorum is not present within ½ hour from the appointed time, the member present shall be quorum, even if the number of member be one.