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)
  • Requirements
    • Examples
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.

Extra Notes:
  1. There is no difference between the requirements of Quorum for Board Meeting of a Public or Private Company.
  2. The Chairperson shall ensure that the required quorum is present throughout the meeting.
  3. Earlier similar provisions were prescribed under section 287 of the companies act 1956.

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