Quorum is the minimum number of members who must be present at a meeting as required by the rules. Any business transacted at a meeting without a quorum is invalid.
Quorum
Quorum is the minimum number of
members who must be present at a meeting as required by the rules. Any business
transacted at a meeting without a quorum is invalid. The main purpose of having
a quorum is to avoid decisions being taken at a meeting by a small minority
which may be found to be unacceptable to the vast majority of members.
The number constituting a quorum
at any company meeting is usually laid down in the Articles of Association. In
the absence of any provision in the Articles, the provisions as to quorum laid
down in the Companies Act, 1956 (under Sec.174) will apply. The Articles may
provide for a larger quorum, but it cannot provide for a smaller quorum than
that laid down in the Act. Sec.174 of Companies Act provides that the quorum
for general meetings of shareholders shall be five members personally present in case of a public company; and
two members personally present for
any other company.
Agenda
The word ‘agenda’ literally means
‘things to be done’. It refers to the programme of business to be transacted at
a meeting. Agenda is essential for the systematic transaction of the business
of a meeting in the proper order of importance. It is customary for all
organisations to send an agenda along with the notice of a meeting to all
members. The business of the meeting must be conducted in the same order in
which the items are placed in the agenda and the order can be varied only with
the consent of the meeting.
Proxy
The term ‘proxy’ is used to refer
to the person who is nominated by a shareholder to represent him at a general
meeting of the company. It also refers to the instrument through which such a
nominee is named and authorised to attend the meeting.
Tags : Business Environment and Law-Meetings And Resolutions
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