The meeting is not legally https://hurleycountrystore.biz/streamlining-business-needs-the-role-of-vdrs-in-data-management/ held if there’s not enough board members. This article will give you some suggestions on how to ensure that your board meetings are held with the requisite quorum to ensure that you can make decisions legally.
Although perfect attendance at every board meeting is not common, quorum guarantees that the decision-making accurately represents the collective views and the interests of all stakeholders. It is a safeguard against the negative effects of minority rule in which certain directors can wield disproportionate influence and take unilateral action that doesn’t fully benefit the company or its stakeholders.
A majority of organizations have quorum rules that are outlined in their bylaws. The rules may differ but usually include a percentage of board directors who must be present in order for a quorum exist. Some bylaws also provide for exceptions that could apply to certain types of meetings or under certain conditions.
When choosing a number of quorum members for your board, take into consideration factors such as the size of your board and the difficulty of getting all members in the same room at the same time. When establishing the rules for quorum, it is crucial to find a balance between the flexibility and legitimacy, as not all members are likely to be present at every meeting.
If the quorum doesn’t meet at the start of a board meeting, the chair should wait a few minutes to determine if additional members are present in order to reach the minimum number required. If it becomes clear the quorum won’t be reached the chair should announce that there’s no a quorum, and that there will be no official business will be carried out at this time.