If you don’t have a sufficient number of board members present at your meeting, the meeting isn’t legal to hold. This article offers some suggestions for meeting virtual board rooms the the quorum for your board meetings so you can make decisions with legitimacy.
Quorum makes sure that, even though perfect attendance is rare at board meetings, the decisions taken accurately reflect the views and interests of everyone involved. It helps avoid the negative ramifications of minority rule where the directors of a few could have a significant influence and can take unilateral decisions that aren’t beneficial to an company or its stakeholders.
Most companies establish the quorum rules within their bylaws. These rules may vary however, they typically include certain percentages of directors who must be present to form a quorum. Some bylaws might also include exceptions to the rule that apply in certain circumstances or for certain kinds of meetings.
Take into consideration factors such as the size of your board or difficulty in getting all of your members together simultaneously in determining the percent of quorum. When establishing the rules for quorum, it is essential to find a balance between the flexibility and legitimacy, as not all board members are likely to attend every meeting.
If the quorum isn’t reached at the start of a board meeting the chair should wait for a few minutes and see if more members show up to make it possible to reach the minimum number required. If it becomes clear the quorum cannot be reached, the chair must announce that a quorum was not present and that no official business will be conducted during this meeting.