A board has seven directors in office, with no vacancies or conflicts and no higher requirement in the articles. How many directors make up the minimum quorum under section 174(1) of the Companies…
Question and options
A board has seven directors in office, with no vacancies or conflicts and no higher requirement in the articles. How many directors make up the minimum quorum under section 174(1) of the Companies Act, 2013?
One
Four
Two
Three
Answer and explanation
Correct answer: D - Three
Section 174(1) of the Companies Act, 2013 fixes the quorum at one-third of the total strength or two directors, whichever is higher. One-third of seven is two and a third, and the explanation to the section counts any fraction as one, so the quorum is three.
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