{"id":11943,"count":1,"description":"

What is the quorum for a private limited company AGM?<\/h2>\r\nQuorum is the minimum number of members who must be personally present for a meeting to proceed validly.\r\n\r\nUnder Section 103 of the Companies Act, 2013, the quorum for a private company is two members personally present, unless the company's Articles of Association provide for a larger number.\r\n\r\nThis requirement applies to the AGM as well as other general meetings, subject to the applicable provisions.\r\n

Does the number of shareholders affect quorum?<\/h2>\r\nThe statutory starting point for a private company is two members personally present. However, the Articles may prescribe a higher quorum.\r\n\r\nConsider a private limited company with two shareholders. Ordinarily, both members need to be personally present to satisfy the statutory quorum.\r\n\r\nIf a company has five shareholders, the default statutory requirement remains two members personally present, unless its Articles require more.\r\n\r\nThe company should not assume that two directors attending the AGM automatically satisfy the requirement. Section 103 refers to members, not simply directors.\r\n

What happens if quorum is not present?<\/h2>\r\nIf quorum is not present within half an hour from the appointed time, Section 103 provides for the meeting to be adjourned in the circumstances covered by the section.\r\n\r\nThe meeting is generally adjourned to the same day in the next week at the same time and place, or to another date, time and place determined by the Board, subject to the statutory requirements.\r\n\r\nIf quorum is still not present at the adjourned meeting within half an hour, the members present may constitute the quorum under the section.\r\n\r\nDifferent treatment applies to a meeting called on the requisition of members.\r\n

What should companies check before the AGM?<\/h2>\r\n