Quorum of the General meeting:

Q. The general meeting of a non-listed public limited company is scheduled to take place at its registered office at 10:30 a.m. At that time two of its members are present personally who represent 7% and 8% respectively of the total voting power on their own account plus proxies.

Discuss the requirement of the Companies Ordinance, 1984 with regard to minimum quorum in the given situation.

(i) Whether the quorum requirement would have been different in case it was a private limited company?

(ii) State your opinion whether the Articles of Association of a company can prescribe a larger number of quorum than the one given in the Companies Ordinance, 1984.

(iii) Discuss the requirement of Companies Ordinance, 1984 for holding of a general meeting where due quorum is not present at the appointed time.

Ans: Quorum of the General meeting:

(i) The minimum quorum required under the ordinance, in the given situation is the two members present personally who represent not less than 25% of the total voting power, either of their own account or as proxies. Since the two members together represent 15% of the total voting power, the minimum quorum is not present

(ii) The requirement of the minimum quorum is the same for the non-listed public company and a private limited company.

(iii) Yes, the Articles can provide a larger number of quorums.

(iv) If the quorum is present within half an hour from the appointed time, the meeting if called upon a requisition of members shall be dissolved; in any other case, it shall stand adjourned to the same day in the next week at the same time and place. If the adjourned meeting, the quorum is not present within half an hour from the time appointed for the meeting, the members present, being not less than two, shall be a quorum, unless the articles provide otherwise.