(a)
- Quorum is the minimum number of persons who must be present fro a company meeting to transact business.
- The number is prescribed by the articles failing which the provisions of the Companies Act apply where two members present in person form a quorum for a private company meeting while three members present in person constitute quorum for a public company meeting.
- It is the duty of the chairman of the meeting to satisfy himself that a quorum of members in present within 15 minutes of the appointed time.
- Persons not entitled to attend are not counted in the ascertainment of quorum.
- If a quorum of members is not present, a meeting summoned by directors stands adjourned to the following week, same day time and place unless the directors otherwise resolve. In all other cases the meeting stands dissolved.
- Quorum is only essential at the commencement of the meeting.
-A meeting with no quorum is a legal nullity.
However, one person constitutes quorum in certain circumstances for example:
- Directors meeting: in the case of a private company.
- Class meeting: shares of a particular class are held by one member.
- Creditors meeting: in the course of winding up.
Adjourned meeting:
- Annual general meeting convened by or at the instance of the registrar of companies: sec 131 (3) of the Companies Act.
- Meeting convened pursuant to a court order: section 135 (1) of the Companies Act
marto answered the question on February 7, 2019 at 06:00
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