The financial encyclopedia uses cookies to improve your user experience. Find out more here!



 

 


 

Quorum
 

 

The number of persons who must be present at a meeting in order that the meeting can officially take place. Absence of a quorum will nullify any decisions made at that meeting. For public and private companies the number of members attending which constitutes a quorum may be stated in the Articles. If no number is stipulated, then two persons personally present constitute a quorum.

At a class meeting of shareholders the required quorum is two persons holding either personally or by proxy at least one third of the nominal value of the issued shares of that class. The number is reduced to one at an adjourned meeting. Also, any person present holding shares or proxies may demand a poll.


Reference: The Penguin Business Dictionary , 3rd edt.