info@consorzioguinadi.itThe meeting cannot legally conducted if there aren’t enough board members present. This article offers some suggestions on how to ensure the quorum for your board meetings to make decisions with the necessary legitimacy.
While the perfect attendance at every board meeting isn’t common, quorum guarantees that the decision-making accurately reflects the opinions and interests of all stakeholders. It prevents the adverse effects of minority rule in which certain directors can wield disproportionate influence and take unilateral actions that does not benefit the company or its stakeholders.
Most companies establish the quorum rules within their bylaws. The rules can be different however, they typically include an amount of directors who are required to be present for an quorum. Some bylaws may also include exceptions to the rule of law that are applicable in certain circumstances or for certain types of meetings.
When making a decision on the percent of quorum for your board, take into consideration factors like the size of your board as well as the difficulty of bringing all members together simultaneously. It is crucial to balance with the legitimacy and flexibility when deciding on your quorum guidelines, since it’s unlikely that every member will be available for every meeting.
If the quorum doesn’t meet at the beginning of a board meeting the chair should wait for a few minutes and see if more members arrive to meet the minimum number required. If it becomes clear the quorum cannot A Complete Data Room Checklist for Seamless and Secure Due Diligence be reached, the chair should announce that a quorum is not present and that there is no formal business can be conducted during this meeting.