ASHUTOSH Rai 05 December 2018
Q. A Ltd has total 11 Director in a particular business, 7 director are interested .
In the board meeting, 8 directors are present out of whom 5 directors are interested in the items of business. is there quorum available? and why
Shrikant (Associate) 05 December 2018
what do you mean by 7 directors are interested in board meeting???
Jalpa Bhatt ( ) 05 December 2018
The quorum is the minimum number of directors required to validate the board meeting.
According to section 174 of the Companies Act,2013 the quorum for meeting shall be one third of its total strength or two directors , whichever is higher, and participation of directors by video conferencing or other audio visual means shall also be counted for the purpose of quorum.Thus in your case quorum is present in the meeting as it exceeding one third of its total strength.
Where a meeting of the board could not be held for want of quorum,then meeting shall automatically stand adjourned to the same day to the same time in the next week.
Shrikant (Associate) 05 December 2018
Nice answer Ms. Jalpa Bhatt. But it seems the query is all about voting by the directors and quorum requirements for directors who are interested into the particular business to be transacted at the meeting.
Jalpa Bhatt ( ) 05 December 2018
Right Sir, but when number of interested directors are exceedind or equal to two third of the strength, the directors who are not interested and present at the meeting,being not less than two,shall be the quorum during such time.
Jalpa Bhatt ( ) 05 December 2018
Right Sir, but when number of interested directors are exceedind or equal to two third of the strength, the directors who are not interested and present at the meeting,being not less than two,shall be the quorum during such time.
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