Section 103 of the Companies Act, 2013
Section 103 of the Companies Act, 2013 – Quorum for meetings
This section lays down the minimum number of members required to be present for holding a general meeting of a company (called quorum).
Key Provisions of Section 103:
1. Quorum for General Meetings:
Private Company:
2 members personally present shall be the quorum.
Public Company:
The quorum depends on the number of members on the date of the meeting:
If members ≤ 1000 → 5 members personally present.
If members > 1000 but ≤ 5000 → 15 members personally present.
If members > 5000 → 30 members personally present.
2. If Quorum Not Present:
The meeting shall be adjourned to the same day in the next week at the same time and place, or as determined by the Board.
If at the adjourned meeting, quorum is still not present:
Private Company → The members present shall be the quorum.
Public Company → At least 2 members present shall form the quorum.
3. Related Party Transactions:
If a company has to approve a contract or arrangement in which any member is a related party, then such member shall not be counted for quorum in that resolution.
Purpose of Section 103:
To ensure that decisions taken at general meetings represent the collective will of a reasonable number of members and not just a few individuals.
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