LML4806-COMPANY LAW PORTFOLIO OCTOBER 2021

COMPANY LAW (LML 4806) ASSIGNMENT 1 2021 The importance of a quorum is to establish the minimum number of persons whose presence at a meeting is required before any valid business is transacted. A shareholders’ meeting may not commence until sufficient persons are present to exercise, in aggregate, at least 25% of the voting rights in respect of at least one matter to be decided in a meeting.1 Furthermore, a matter to be decided on may not begin to be considered unless sufficient persons are present at the meeting to exercise, in aggregate, at least 25% of all the voting rights entitled to be exercised on that particular matter.2 The Act allows the MOI to specify a different quorum threshold. It is worth noting that once the quorum requirements for a meeting to commence or for a matter to be considered have been satisfied, the meeting may continue as long as at least one shareholder with voting rights is still present at the meeting, unless the company’s MOI provides otherwise.