Short Questions - Short Answers – Crispy and Crunchy

What are the points for the quorum of the board meetings as per corporate laws?

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Two laws are applicable Companies Act, 2013 (Sec 174) and LODR (Reg 17(2A)).

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As per Companies Act, 2013

1.?????? ?1/3 of the total strength or 2 Directors, whichever is higher.

2.?????? In case of passing a resolution wherein number of interested directors are more, than in that case we need at least 2 dis-interested directors.? If this is not possible, then the resolution needs to be passed by members of the company in there general meeting.

3.?????? In case of Private Limited company, wherein the number of interest directors are more and dis-interested directors are less, the for the purpose of quorum interest directors will be counted for quorum after disclosure of his interest pursuant to section 184.

4.?????? In case if the meeting could not be held due to want of quorum, then check the Articles of Association, otherwise the meeting will stand automatically adjourned to the same day at same time and place in the next week, or if that day is holiday, then next succeeding day which is not holiday.

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As per LODR

1.?????? If you are top 2000 company, then quorum for the Board Meeting shall be 1/3 of its total strength or 3 directors, whichever is higher, including at least one independent director.

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As per both law and regulation participation of the directors by video conferencing or by other audio-visual means shall also be counted for the purposes of such quorum.

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