English

Justify the following statement. Annual General Meeting is adjourned in absence of quorum.

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Question

Justify the following statement.

Annual General Meeting is adjourned in absence of quorum.

Answer in Brief
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Solution

The quorum means the minimum number of members legally required to remain present at the beginning and during the course of the meeting. Meeting without quorum is invalid and the business it transacts becomes null and void. The Companies Act has prescribed certain minimum requirement for quorum e.g. the quorum for a general meeting of a public company is 51 the number of members of the company does not exceed 1,000 and for a private company quorum is 2 members.

The proxies cannot be counted for quorum. The Articles of Association may increase the minimum requirement but cannot decrease it. The quorum is also required during the course of the meeting The moment when attendance fan. short of the quorum, a member may raise a point of order and Chairman has to stop the proceeding, on‘ the meeting and is adjourned it. Even in the beginning of meeting if requisite quorum is in formed or constituted, the meeting will be postponed for an hour and even after that if quorum is not constituted the meeting Will not be held and it will be adjourned and will be held on me same day. Time and place in the next week.

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Types of Meeting - Shareholders Meetings
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Chapter 8: Company Meetings - 2 - Exercise Q.6 [Page 133]

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Balbharati Secretarial Practice [English] Standard 11 Maharashtra State Board
Chapter 8 Company Meetings - 2
Exercise Q.6 | Q 1 | Page 133

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