Board meeting


Chartered Accountant in Practice

Suppose there are two directors in a board and convened a board meeting to discuss a matter in which, one of the director discloses his Interest. How will the quorum for the meeting be counted?

 
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Professional

If it's a private company, then After disclosure of interest, a director can participate in a meeting, Vote thereon, and also counted towards quorum ..

if its a public company, then interested director will not be counted towards quorum and vote Thereon... In this situation such matters will be reserved for next board meeting(adjourned due to want of quorum).... It will be a better practice to change the Serial No of Agenda item(s) at meeting so that All other business can be smoothly passed/deliberated before adjournment...

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