What is Quorum? Definition and Examples in Business and Beyond

Quorum refers to the minimum number of members that must be present for a meeting or decision-making process to take place. The term comes from the Latin word "quorum," meaning "of whom." In business, quorum is often used in the context of board meetings, shareholder meetings, and other decision-making bodies where a certain number of members must be present for the meeting to be official.

For example, if a company's bylaws state that a quorum of 50% of the board members is required for a meeting to be official, then at least half of the board members must be present for the meeting to proceed. If fewer than 50% of the board members are present, the meeting may not be valid and any decisions made may not be binding.

Quorum can also be used in other contexts outside of business, such as in government or non-profit organizations, where a certain number of members must be present for a meeting to take place. In general, quorum is used to ensure that there is a sufficient number of members present to make decisions and take action on behalf of the group.