Quorum

Written By
Paul Tracy
Updated July 1, 2021

What is a Quorum?

A quorum is the minimum number of directors required to conduct a board meeting. Usually is a quorum is a majority.

How Does a Quorum Work?

Let's assume Company XYZ has 10 board members. Its bylaws state that at least six board members must attend each board meeting for the board to conduct business.

A vacancy on the board does not change the number of directors needed for quorum.

Why Does a Quorum Matter?

In order to conduct business, a board must have a quorum. This ensures the shareholders' interests are adequately represented.

Activate your free account to unlock our most valuable savings and money-making tips
  • 100% FREE
  • Exclusive money-making tips before we post them to the live site
  • Weekly insights and analysis from our financial experts
  • Free Report - 25 Ways to Save Hundreds on Your Monthly Expenses
  • Free Report - Eliminate Credit Card Debt with these 10 Simple Tricks
Ask an Expert
All of our content is verified for accuracy by Paul Tracy and our team of certified financial experts. We pride ourselves on quality, research, and transparency, and we value your feedback. Below you'll find answers to some of the most common reader questions about Quorum.
Be the first to ask a question

If you have a question about Quorum, then please ask Paul.

Ask a question

Paul has been a respected figure in the financial markets for more than two decades. Prior to starting InvestingAnswers, Paul founded and managed one of the most influential investment research firms in America, with more than 3 million monthly readers.

If you have a question about Quorum, then please ask Paul.

Ask a question Read more from Paul
Paul Tracy - profile
Ask an Expert about Quorum

By submitting this form you agree with our Privacy Policy

Don't Know a Financial Term?
Search our library of 4,000+ terms