Which scenario describes the correct quorum for a single-member private company?

Which scenario describes the correct quorum for a single-member private company?

• A. Quorum requires two shareholders
• B. Quorum requires two directors
• C. Quorum requires all members
• D. Quorum requires one member

Answer: (D)

Quorum is the minimum number of people required to hold a valid meeting and transact business. In a single-member private company, there is only one member, so the smallest possible group needed to conduct a members’ meeting is that one person. Therefore, the minimum quorum is one member. The other options would require more people than exist in this company (two shareholders or two directors), or duplicate the idea of “one member” in a more awkward way, so they don’t fit the scenario as cleanly.

Quorum is the minimum number of people required to hold a valid meeting and transact business. In a single-member private company, there is only one member, so the smallest possible group needed to conduct a members’ meeting is that one person. Therefore, the minimum quorum is one member. The other options would require more people than exist in this company (two shareholders or two directors), or duplicate the idea of “one member” in a more awkward way, so they don’t fit the scenario as cleanly.