Secretarial Practice · Ch 7 — Company Meetings – I
Quorum — Section 103
Quorum — Section 103
Even with proper notice, a meeting cannot be allowed to transact business if only a handful of members happen to turn up — the decisions taken would not genuinely represent the body of shareholders. Quorum is the safeguard against this.
Meaning
Quorum is the minimum number of members who must be personally present at a meeting before it can validly proceed to transact any business. If a quorum is not present within half an hour from the time appointed for the meeting, the meeting stands automatically dissolved (if called upon requisition) or stands 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 may determine (in any other case).
Statutory Quorum under Section 103
Unless the company's Articles of Association provide for a larger number, the quorum for a general meeting is:
| Type of company | Number of members as on the date of the meeting | Quorum required |
|---|---|---|
| Public company | Not more than 1,000 | 5 members personally present |
| Public company | More than 1,000 but not more than 5,000 | 15 members personally present |
| Public company | More than 5,000 | 30 members personally present |
| Private company | Any number | 2 members personally present |
Only members personally present count towards quorum in most cases — a member represented merely by a proxy generally does not count towards this number for an ordinary company, though the company's Articles or specific statutory provisions may in some cases treat certain represented persons differently. If, during the course of a meeting, the number of members present falls below the quorum, any business transacted thereafter is not valid.
Why Quorum Matters …
The minimum number of members required to be personally present at a meeting, under Section 103 of the Companies Act, 2013 or the company's Articles, before any business at that me …
A meeting that could not proceed (commonly for want of quorum) and is postponed to a later date, time and/or place, at which the originally scheduled …