New Upcoming Legal Jobs Free Workshop March 11 at 5 PM. Register here

    Question

    What is the quorum required for a Board of Directors

    meeting according to Companies Act, 2013?
    A 1/3rd of total strength of directors Correct Answer Incorrect Answer
    B 2 directors Correct Answer Incorrect Answer
    C 1/4th of total strength of directors Correct Answer Incorrect Answer
    D A or B whichever is higher Correct Answer Incorrect Answer
    E B or C, whichever is higher Correct Answer Incorrect Answer

    Solution

    Quorum of Meetings – Sec 174 Quorum for the meeting shall be 1/3rd of total strength or 2 directors whichever is higher. Participation of directors through video conferencing or other audio visual means shall also be counted for the purpose of quorum with exception to the meetings with the following agenda

      • Approval of annual financial statements ;
      • Approval of Board’s Report ;
      • Approval of prospectus;
      • Audit Committee Meetings for considertion of Accounts;
      • Approval of matters relating to amalgamation, merger, demerger, acquisition and takeover .
    If number of ‘Interested Directors’ is 2/3rd or more of total directors than, the other directors not less than 2 shall be the quorum for that time

    Practice Next