Question

Define:
(a) Quorum
(b) Board of Directors (SOD)
(c) Qualification Shares
(d) Prospectus
(e) One Person Company

Answer 1

(a) Quorum- A quorum is the minimum number of members of a deliberative assembly (a body that uses parliamentary procedure, such as a legislature) necessary to conduct the business of that group.

(b) Board of Directors- A board of directors is a team of people elected by a corporation's shareholders to represent the shareholders' interests and ensure that the company's management acts on their behalf. The head of the board of directors is the chairman or chairperson of the board.

(c) Qualification shares -Qualifiction shares are those shares whch directors of the company must hold (if the articles of the company provides) to become the direcctors of the said company.

(d) Prospectus - A prospectus is a legal document issued by companies that are offering securities for sale. Mutual funds also provide a prospectus to potential clients, which includes a description of the fund's strategies, the manager's background, the fund's fee structure and a fund's financials statements.

(e) One Person Company- 'One Person Company means a company which has only one member'. It shall also be important to note that Section 3 classifies OPC as a Private Company for all the legal purposes with only one member.