What is meant by the term "quorum" in relation to company meetings?

The term "quorum" refers to the minimum number of attendees required to hold a meeting for it to be considered valid and capable of conducting business. This concept is crucial in corporate governance, as it ensures that decisions made during meetings reflect a sufficient level of participation and consensus among the members or directors. Without meeting the quorum requirement, any resolutions or decisions made during the meeting could be deemed invalid, thereby protecting the interests of all stakeholders involved.

In the context of company meetings, establishing a quorum helps to prevent a small group from making decisions on behalf of the entire entity, which reinforces the principle of collective decision-making. The specifics regarding the required number of attendees to achieve a quorum can vary based on the company’s bylaws or relevant laws, but it is a foundational aspect of meeting protocols in corporate environments.