What is Quorum in Crypto Governance?
In crypto governance, quorum refers to the minimum number of approved members of an organization or company who must be present for a meeting to take place or a motion passed.
From a governance standpoint, quorum members can make binding decisions on behalf of a company. This is why the quorum’s total make-up is vital and must represent the views or opinions of the majority of those being represented.
This process of having certain key members present despite the absence of other members whose voices don’t necessarily count is known as a quorum. Quorum members make up the governing body of the group, and whatever they agree upon is binding. Typically, quorum makes up a majority percentage of a group, say 51 percent.
However, in other cases, other companies have specific guidelines for appropriation. This means there is no law to determine the minimum number of voting members for a meeting to be convened and decisions made. As would be the case, when the majority of members are present to form a quorum, they often represent the voice of everyone or the majority of the firm.
All the same, a properly constituted quorum must comprise most members allowed to vote on decisions for democracy to prevail.
What Happens In The Absence Of A Quorum?
Without a quorum, decision-making or governance in the crypto company becomes difficult to make.
Quorum may be lacking because of low representation often occasioned by team members not showing up. In such a case, Robert’s rules allow representatives to make limited decisions to achieve a quorum so more concrete decisions can be made.
The 4 Robert Rules of Order to Achieve a Quorum
- The scheduling of the next meeting to attempt to create a quorum.
- Members of the meeting can adjourn the meeting.
- Individual members can call for simple breaks and recess during the sessions.
- Finally and most importantly, members can create a “special committee” tasked with calling or gathering absent members.
Robert’s Rules often lead in restoring order and enabling the possibility of maintaining such order whereby a minority is not allowed to make decisions. These rules enable a democratic and transparent process aimed at formulating a quorum.
In the long run, Robert’s Rules enable a successful creation of a quorum to ensure that decision-making represents the majority of member opinion.
How a Quorum is Determined
The determination of a quorum hinges upon the responsibility of the chairperson of the board or group.
Without this, any member can call the group’s attention to order. This is because knowing when a quorum has been lost can be difficult.
Although, a chance can be given in retrospect to confirm if quorum is genuinely absent.
Limited Actions in the Absence of a Quorum
If a quorum is not achieved, the whole group can have a limited decision-making process. Restoring quorum takes time because of adjustments and laid down processes that may have to be adhered to for smooth decision making.
As mentioned earlier, without quorum, business decisions are rendered invalid, except it is shifted to a later date where a quorum is present for approval.
Depending on laid down company rules, any member who thinks they can ratify certain business transactions without quorum may be fined.