THE MEETINGS OF THE COMPANY. — SPCC STD 12 Commerce — Question
Gujarat BoardEnglish MediumSTD 12 CommerceSPCCTHE MEETINGS OF THE COMPANY.2 Marks
Question
State the importance of Quorum.
✓
Answer
(i) For a Public Limited Company: If the number of the shareholders does not exceed 1000 then the presence of 5 members will be considered as quorum. If the number of shareholder is between 1001 to 5000, then the presence of 15 members will be considered as quorum. If the number of shareholders exceeds 5001 then the presence of 30 members will be considered as quorum.
(ii) For a Private Limited Company: The presence of two members will be considered as quorum.
(iii) If an adjourned meeting is reconvened and the required quorum is not reached even after 30 minutes of the time specified in the notice, then present members can be considered as quorum and the meeting can be conducted with the approval of the Board of Directors.
(iv) The above provisions are not applicable to the company headed by only one person.
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