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Definition of 'Quorums'

A quorum is the minimum number of members that must be present at a meeting in order for the meeting to be considered official. The quorum requirement is set by the organization's bylaws or other governing documents.

In the United States, the quorum requirement for the House of Representatives is a majority of the members (218 members). The quorum requirement for the Senate is a majority of the members (51 members).

In a corporation, the quorum requirement is typically set at a majority of the outstanding shares. For example, if a corporation has 100,000 outstanding shares, the quorum requirement would be 50,000 shares.

The quorum requirement is important because it ensures that there is a sufficient number of people present at a meeting to make decisions that are binding on the entire organization. If the quorum is not met, the meeting cannot be held and no decisions can be made.

There are a few exceptions to the quorum requirement. For example, in the United States Senate, a quorum can be waived if all of the members of the Senate agree to do so. In a corporation, the quorum requirement can also be waived if all of the shareholders agree to do so.

The quorum requirement is an important part of corporate governance. It helps to ensure that decisions are made by a quorum of members who are representative of the entire organization.

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