ACCA Corporate and Business Law (F4) 2025 – 400 Free Practice Questions to Pass the Exam

The quorum for a general meeting of a registered company is defined as two persons being members or proxies for members. This requirement ensures that there is sufficient representation of the shareholders to conduct the business of the meeting effectively.

The concept of a quorum is crucial in corporate governance because it prevents a situation where decisions are made without adequate participation from the members of the company. By specifying two persons, the law aims to strike a balance between facilitating meetings and protecting the interests of shareholders. This allows for a minimum level of engagement and represents different viewpoints during the meeting discussions.

In contrast, other options imply a higher or lower threshold of participation, which either does not comply with common corporate governance practices or does not provide sufficient representation. Therefore, the requirement of two persons ensures that there is an appropriate and practical opportunity for members, or their proxies, to engage in the decision-making process of the company.

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