In corporate voting, what does a quorum refer to?

In corporate voting, a quorum is defined as the minimum attendance required for a meeting to legally proceed. This means that a certain number of shareholders, typically defined in the corporation's bylaws or state law, must be present—either in person or by proxy—so that decisions made during the meeting can be considered valid and official. Without meeting this threshold of attendance, any votes or resolutions passed during that meeting might be deemed invalid, thus preventing decisions from being made purely based on a small, unrepresentative group of shareholders.

This concept is essential because it ensures that the interests of a larger group of shareholders are represented and that business matters are conducted with adequate representation. In most circumstances, the specific number required for a quorum will depend on the corporation's governance documents or applicable state law, highlighting the importance of having a sufficient presence during corporate meetings.

Other options provided do not capture the essence of a quorum. For example, the minimum number of votes needed to pass a resolution relates more to the voting process itself rather than attendance. Similarly, the total votes cast in favor of a proposal pertains to the outcome of voting and not the prerequisite attendance, and the number of shares held by a director is unrelated to meeting requirements for quorum. Thus, understanding that quorum