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Quorum for Board Meeting
Meaning of Quorum in Board Meeting:
It means the minimum number of Directors whose presence is required for a Meeting of Board of Directors of a Company.
Quorum for board meeting ( Companies act 2013 - Section174)
if a Company has:
(1) Four(4) Directors : Quorum will be 2. [4*1/3= 1.33 (rounded off 2)]
(2) Six(6) Directors : Quorum will be 2. [6*1/3= 2]
(3) Eleven(11) Directors : Quorum will be 4. [11*1/3= 3.67 rounded off to 4]
In Cases Interested Directors:
(4) Total 10 Directors, so Quorum will be 10*1/3=3.33 rounded off to 4. but Interested Directors are 2, then Quorum required will be (10-2)*1/3=2.67 rounded off to 3. But in case Interested Directors are 7, then Quorum i.e. (10-7)*1/3=1, one Director cannot be considered for Quorum, it has to be at least two.
There is no difference between the requirements of Quorum for Board Meeting of a Public or Private Company.
Chairperson shall ensure that the required quorum is present throughout the
Earlier similar provisions were
prescribed under section 287 of the companies act 1956.