CA Discussion ForumCategory: CA FoundationQUORAM IN CHAPTER COMPANIES ACT, 2013
Tanisha Agarwal asked 3 years ago

WHAT IS THE MEANING OF QUORAM? IN BOTH PUBLIC AND PRIVATE COMPANY?

 

 

Preeti maam-Admin Staff replied 3 years ago

Quorum means the minimum number of members who must be present at a meeting. Thus, it is the number of members on whose presence the meeting of a company can commence its discussions. • If there is no quorum requirement, decisions may be taken by a small minority, which may be detrimental or unacceptable to a vast majority of members

As per Section 103 of The Companies Act, 2013

Quorum for PUBLIC COMPANY
Quorum as per AOA or as per Table below, whichever is higher

Number of Members
Not more than 1000(i.e. ≤ 1000) Quorum is 5 members personally present

More than 1000, but upto 5000 (i.e. > 1000 and ≤ 5000) Quorum is 15 members personally present

More than 5000 (i.e. > 5000) Quorum is 30 members personally present

Quorum for PRIVATE COMPANY
Quorum as per AOA or 2 members personally present, whichever is higher