Solicitors Qualifying Examination (SQE) Stage 1 Functioning Legal Knowledge (FLK) 1 Practice Test

Quorum is the minimum number of members required to be present for a general meeting to be valid and to transact business. For a company that has more than one member, the default rule is that two members must be present (in person or by proxy) to constitute a quorum. This ensures there is at least a small level of participation and prevents a meeting from occurring with only a single person making decisions. So two shareholders are needed because a single person would not meet the standard expectation when more than one member exists, unless the company's articles provide otherwise. The idea behind a fixed minimum rather than a majority is to set a practical floor that allows meetings to proceed without requiring a large turnout. If the company had only one member, that member would alone satisfy the quorum. And remember, the articles can change this number, so it’s always worth checking them.