Quorum
Categories: Company Management
Are enough people present to have a legal vote? That's a quorum when you have enough people there. Many boards have a minimum-attendance number before new policy can be enacted. Like...if a given board of directors has 11 people, a quorum might require that at least 9 of them be present (either in person or on the phone) for a given vote to count.
Why would you have this law? Well, you can imagine a nefarious situation when a board is hostile in one form or another, and only 3 members convene...and vote all the other board members off the island, shrinking the board from 11 to 3, so that now the company has a completely different caste of government.
When the tribe as spoken, you want it to reflect a broad array of opinions: those elected by the common shareholders of the company.
