What is the requirement for quorum as stated in the Revised Corporation Code?

The requirement for quorum as stated in the Revised Corporation Code emphasizes the necessity of a specific numerical threshold to ensure that decisions made at meetings are representative of the board or organization's collective will. According to the Code, a quorum is defined as constituting at least two-thirds of the directors or trustees unless stated otherwise in the articles of incorporation. This provision is designed to promote effective governance by ensuring that a significant majority of board members participate in important decisions.

By requiring two-thirds of the directors or trustees to be present, this standard mitigates the risk of a very small group making decisions that could affect the entire corporation, thus bolstering corporate governance and accountability. This arrangement also balances the need for efficiency in decision-making with the need to ensure sufficient representation from the board during discussions and votes.

Understanding this requirement is crucial for anyone involved in the management of a corporation, as it helps in determining the validity of actions taken during board meetings and emphasizes the importance of having a broad representation of the board in decision-making processes.