What is the Quorum of the Annual General meeting in the case of a private company?

2 members
3 members
4 members
5 members

The correct answer is: A. 2 members

A quorum is the minimum number of people required to be present at a meeting in order for it to be valid. In the case of a private company, the quorum for an annual general meeting is two members. This means that if only two members of the company are present at the meeting, it can still be held and decisions can be made.

The reason for this is that private companies are typically smaller than public companies, and it can be difficult to get all of the shareholders to attend a meeting. By requiring only two members to be present, it makes it easier for private companies to hold annual general meetings.

If there are not enough members present at a meeting to form a quorum, the meeting will be adjourned. This means that it will be stopped and rescheduled for a later date. If the meeting is adjourned three times, the company must apply to the court for an order to hold the meeting.

It is important to note that the quorum for an annual general meeting is different from the quorum for other types of meetings. For example, the quorum for a board meeting is usually three members.

I hope this explanation is helpful. Please let me know if you have any other questions.