What condition applies to directors' meetings under BCA?

In the context of the Business Corporations Act (BCA), the requirement that applies to directors' meetings is that a quorum must be established for the meetings to proceed. A quorum is the minimum number of directors that must be present to validate the proceedings of a meeting. This ensures that decisions made during the meeting are representative of the board's overall governance and not just the opinions of a minority.

Without a quorum, any decisions or resolutions made during the meeting may be rendered invalid, leading to potential legal challenges or governance issues. The BCA typically specifies what constitutes a quorum, which is often a majority of the directors unless the corporation's articles or bylaws stipulate otherwise.

Establishing a quorum is crucial for the integrity and function of the board, as it helps prevent situations where a small number of directors could make decisions without broader representation or input from the rest of the board.

Other options, such as requiring that the number of directors be reduced at each meeting, mandating quarterly meetings, or insisting on unanimous consent for all decisions, do not reflect the standard legislative requirements under the BCA for the conduct of directors' meetings. Each of these suggestions has practical and operational implications that could hinder corporate governance and are not typically enforced under statutory corporate law