Section 174 of CA 2013 : Section 174: Quorum For Meetings Of Board

Explanation using Example

Imagine XYZ Pvt. Ltd. has a Board of Directors with 9 members. According to Section 174(1) of the Companies Act, 2013, the quorum for a board meeting would be one-third of its total strength or two directors, whichever is higher. In this case, one-third of 9 is 3, but since 2 is the minimum, the quorum would be 3 directors.

Now, suppose 3 directors have resigned, leaving only 6 directors on the board. Even with these vacancies, the remaining directors can continue to act as per Section 174(2). However, for a board meeting, they n...

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