Section A

What is the standard quorum for a general meeting of a private limited company with multiple shareholders?

Answer options:

One qualifying person.

Two qualifying persons.

Five qualifying persons.

A majority of the shareholders.

How to approach this question

Recall the statutory default rule for the minimum number of people required to hold a valid meeting.

Full Answer

B.Two qualifying persons.✓ Correct

Under s.318 of the Companies Act 2006, the default quorum for a general meeting is two qualifying persons (shareholders or their proxies). For a single-member company, the quorum is one.

Common mistakes

Assuming a percentage of shareholders must be present.

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Practice the full ACCA LW — Corporate and Business Law Practice Exam 6

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