Definition Of Quorum In Company Law

A quorum is a minimum number of persons belonging to a legislative assembly a corporation society or other body required in order to conduct business.

Definition of quorum in company law. In the first case a majority is required to constitute a quorum unless the law expressly directs that another number may make one. A quorum refers to the minimum acceptable level of individuals with a vested interest in a company needed to make the proceedings of a meeting valid under the corporate charter. There is a difference between an act done by a definite number of persons and one performed by an indefinite number. A quorum is the number or proportion of the members of an organization that must be present in order to transact any business.

Used substantively quorum signifies the number of persons belonging to a legislative assembly a corporation society or other body required to transact business. In business a quorum is a minimum number of eligible shareholders or stockholders who must be present. They may be present physically or by proxy. A quorum is the minimum number of people who must be present to pass a law make a judgment or conduct business.

Quorum means with respect to the administrative trustees a majority of the administrative trustees or if there are only two administrative trustees both of them or if there is only one administrative trustee such person. Quorum requirements typically are found in a court legislative assembly or corporation where those attending might be directors or stockholders. It cannot transact business validly. Fixed minimum number of eligible members or stockholders shareholders who must be present physically or by proxy at a meeting before any official business may be transacted or a decision taken.

In some cases the law requires more people than a simple majority to form a quorum. A meeting cannot start or transact business until there is a minimum number of voting members a quorum. Sample 1 sample 2 sample 3.