Skip to content

CS Executive · Company Law and Practice · Meetings of Board and its Committees

Kaveri Textiles Ltd has a Board with total strength of 8 directors. Applying the rounding rule in the Explanation to section 174, what is the quorum for a Board meeting?

The quorum is 3 directors. One-third of eight is 2.67, and the Explanation to section 174 says any fraction of a number is rounded off as one, giving 3. That is higher than the floor of two directors, so three is required.

  1. A2 directors
  2. B3 directorsCorrect
  3. C4 directors
  4. D5 directors

Explanation

One-third of 8 is 2.67. Under the Explanation, any fraction is rounded off as one, so it becomes 3. Since 3 is higher than 2, the quorum is 3. Rounding down to 2 is wrong because fractions are rounded up.

Did you get it right without looking?

One question tells you little. A timed set on Meetings of Board and its Committees shows your real accuracy, how long you take and where you lose marks.

Practise Meetings of Board and its CommitteesFree diagnostic mock

More Meetings of Board and its Committees questions