EFFECT OF FAILURE OF A QUORUM- companies act 2013



Posted on 26-03-2016        By ADMIN



EFFECT OF FAILURE OF A QUORUM- companies act 2013 

EFFECT OF FAILURE OF A QUORUM-
If no quorum is present, then there is no meeting and the proceedings areinvalid. However, acts done creating rights in favour of third parties at ameeting without a quorum being present would not affect the rights of suchthird parties, provided they had no notice of the irregularity (e.g.-debentures issued at a meeting of directors where there was an insufficientquorum. If a meeting has reached decisions which are acted upon and treated asvalid by all concerned, it is not within the competence of a person notconcerned at a time, to seek to invalidate the proceedings because of the lackof quorum.



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