What is a Quorum?

A quorum is the minimum number of board directors that need to be present to make the proceedings of a meeting valid. A quorum ensures that there is sufficient representation and that a fair and transparent decision-making process is upheld to protect the interests of all shareholders.

A quorum is established through a majority vote of the board members present in a meeting, which may be a fixed number or a percentage based on the average board meeting attendance. This number is usually stated in the bylaws of the organization. It is vital that the number is as large as possible to accurately represent shareholders but not so large that it becomes difficult to hold a meeting.