If in a company 8 director present in a meeting and total number of director is 15 . And meeting get started after 3 hour of started a meeting. 3 director left in middle of meeting. Will quorum still present or resolution which passed in meeting is still valid? If no .Resolution which passed in meeting can it get Ratified
The quorum for a meeting of the Board of Directors of a company shall be one third of its total strength or two directors, whichever is higher. Quorum shall be present not only at the time of commencement of the Meeting but also while transacting business. In the given case required quorum is 5 directors and hence, quorum is present even after 3 directors left in middle of meeting. But if quorum has fallen below the requirement then, Meeting of the Board then, unless otherwise provided in the Articles, the Meeting shall automatically stand adjourned to the same day in the next week, at the same time and place or, if that day is a National Holiday, to the next succeeding day which is not a National Holiday, at the same time and place. If there is no Quorum at the adjourned Meeting also, the Meeting shall stand cancelled.
by Shubhamm Sir
at 27-Apr-2023 03:37 AM