• Quorum required for Selecting PMC in SGM

We had quorom for SGM held for redevelopment of building in which the PMC was finalised. After few months the PMC resigned so we advertised in newspaper asking proposals from PMC. Out of 19 proposals received 5 were shortlisted and placed in SGM which also had the required Quorom. Members were not able to finalise 1 PMC in SGM hence it was decided to call for presentations of PMC in next SGM.

Out of 5 shortlisted further 2 were rejected by committee as same were referred by member of working committee. SGM was called to have presentation of 3 PMC. The said SGM had 60% of Quorom and all members in SGM finalised 1 PMC out of 3.

My question is wether 75% quorom is mandatory for SGM held for finalisation of PMC, Eventhough all the earlier 2 SGM held for redevelopment and selection of PMC had complete Quorom. If yes whats is the solution to regularise this issue to avoid any complications later.
Asked 2 years ago in Civil Law

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8 Answers

You should have done the following:

In case the required quorum is not present within half an hour of the appointed time, the meeting should have been adjourned to a later hour on the same day or to a subsequent date which cannot be earlier than seven days and not later than 30 days from the original date of the AGM. At the adjourned meeting, there is no requirement to have a quorum.

Therefore you can again hold a SGM and select the same PMC to regularise the whole process. If the qourom is not present, the minutes of the meeting will record the same and can become a problem if any member objects in the future. Therefore rectify it as soon as possible.

Gowaal Padavi
Advocate, Mumbai
1920 Answers
5 Consultations

5.0 on 5.0

The quorum for the SGM called to consider the subject of Redevelopment of the society’s building will be 3/4th of the total number of the members of the society. In case of no quorum, the meeting will be adjourned for 8 days and if there is no quorum attained for the adjourned meeting under such circumstances such adjourned meeting will be dissolved considering that the members have no interest in the Redevelopment of the society’s building/s. On condition of attaining required quorum, the suggestions, objections, recommendations, and references placed by the members regarding Redevelopment of society’s building/s will be considered and noted in the minutes of the meeting along with the observations made by all the members. Thereafter a majority of 3/4th of the members present at the meeting is required to pass a primary resolution regarding the decision for Redevelopment of the society building. After the approval of the Resolution for Redevelopment, the Meeting will consider the following business.

– To approve the Terms and Conditions along with the scope of the work to be carried out by the eligible Architect / PMC.

– To submit the proposal for Building Redevelopment Project.

Ganesh Kadam
Advocate, Pune
11745 Answers
114 Consultations

4.9 on 5.0

The Society should call for a SGM and since this being an important meeting the quorum for the meeting shall be at least 75% of the Members of the Society. The Managing Committee should discuss the Feasibility Report in the Meeting and if at least 3/4th of the Members present in the meeting agree for Re-development, then they should pass a Resolution to go for Re-development of the Building and authorise the Office Bearers to start the procedure to appoint Architect / Civil Engineer / Financial Consultant or Project Management Consultant. In the same meeting, the Society should form a “Re- development Committee” of at least 5 prominent / senior / original members of the Society,

2) The Office Bearers shall shortlist Architect/Civil Engineer/ Financial Consultant / Project Management Consultant for appointment and recommend their names to the Re- development Committee to confirm their choices and fees chargeable by these professional/s. The Managing Committee should call for a SGM and introduce these Professionals to the Members of the Society and give their recommendations. A decision should be taken in this Meeting to appoint any or all them of them and fix their duties and fees.

3) 75 per cen t quorum is not mandatory for finalisation of PMC

Ajay Sethi
Advocate, Mumbai
79719 Answers
4806 Consultations

5.0 on 5.0

2/3 quorum is required for and in case quorum is not complete the SGM may be called after 48 hours and the members present in that SGM amounts to quorum.

Vimlesh Prasad Mishra
Advocate, Lucknow
6793 Answers
23 Consultations

4.9 on 5.0

Yes, it is permissible, but advice you to go by the norms with regard to the same.

Sanjay Baniwal
Advocate, South Delhi
5464 Answers
13 Consultations

5.0 on 5.0

For the Co-op. Hsg. Societies in which the Redevelopment work of the buildings is required to be undertaken, an application of requisition to hold a Special General Body Meeting of the members of the society to consider and discuss the Redevelopment Project and suggestions on the same, is to be submitted to the Hon. Secretary of the Managing Committee which is properly elected as per provisions of the society’s Bye-laws and also constituted as per the provisions of the MCS Act 1960. The requisition application is to be signed by not less than 1/4th of the total members of the society.

The quorum for the SGM called to consider subject of Redevelopment of the society’s building will be 3/4th of the total number of the members of the society. In case of no quorum, the meeting will be adjourned for 8 days and if there is no quorum attained for the adjourned meeting under such circumstances such adjourned meeting will be dissolved considering that the members have no interest in the Redevelopment of the society’s building/s. On condition of attaining required quorum the suggestions, objections, recommendations and references placed by the members regarding Redevelopment of society’s building/s will be considered and noted in the minutes of the meeting along with the observations made by all the members. Thereafter a majority of 3/4th of the members present at the meeting is required to pass a primary resolution regarding the decision for Redevelopment of the society building. After the approval of the Resolution for Redevelopment the Meeting will consider following business.

T Kalaiselvan
Advocate, Vellore
69750 Answers
951 Consultations

5.0 on 5.0

Hi there,

Assuming that here SGM means Special General Meeting (i.e. Extraordinary General Meeting of Shareholders of the Company) and PMC means Project Management Consultant.

Having the quorum and passing of resolution are two different issues.

a. Quorum is minimum number of members require to convene a valid meeting.

b. A resolution can be passed as an "Ordinary Resolution" or "Special Resolution" depending upon the requirement of the Companies Act and Articles of Association of the Company. Where an Ordinary Resolution requires majority of votes in favor out of members present and voting i.e 50% or more or voting members, to pass a Special resolution, it has to be approved by atleast 75% of the members present and voting.

If Articles of Association of your Company provides for a quorum of 75% or more or any other specific quorum to approve such matters then it has to be followed otherwise minimum quorum to convene SGM is 2 members (in case of private company) and 5 members / 15 members / 30 members as the case may be (in case of public company).

In my opinion you need to review the AOA of the Company and assess the correct position.

We can have a call if you need.

Best Regards,

Tarun Singhvi

Tarun Singhvi
Advocate, Mumbai
2 Answers

4.0 on 5.0

2/3rd of the total number of member of the society or 20 whichever is less.

Way out is In case the required quorum is not present within half an hour of the appointed time, the meeting shall be adjourned to a later hour on the same day or to a subsequent date which cannot be earlier than seven days and not later than 30 days from the original date of the AGM. At the adjourned meeting, there is no requirement to have a quorum

Yogendra Singh Rajawat
Advocate, Jaipur
21407 Answers
31 Consultations

4.4 on 5.0

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