If you don’t have the required number of board members in attendance at your meeting, the meeting isn’t legally allowed to take place. This article provides some tips to ensure you have the quorum required for board meetings so you can make decisions with legitimacy.
Quorum guarantees that, even the absence of perfect attendance is not uncommon at board meetings, the decisions taken accurately reflect the views and the interests of everyone involved. It reduces the negative impact of minority rule in which directors from a small number can exert a disproportionate influence and make unilateral decisions that do not benefit the company or its stakeholders.
The majority of organizations set their quorum rules in their bylaws. These rules may vary, but they usually include an amount of directors that must be present to form an quorum. Certain bylaws could also contain exceptions to the rule of law that are applicable in certain situations or for certain types of meetings.
When choosing a proportion of quorum for your board, think about factors such as the size of your board as well as the difficulty of getting all members together at the same time. When establishing the rules for quorum, it is crucial to achieve a balance between flexibility and legitimacy, since not all board members are likely to be present at every meeting.
If the quorum cannot be reached at the start of a board meeting, the chair should wait a few minutes to see if more members show up to make it possible to reach the minimum number required. If it becomes evident that the quorum won’t be reached the chair should announce that there’s not an quorum and no business of any kind will be conducted at this meeting.
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