What is an Extraordinary General Meeting?


An Extraordinary General Meeting or EGM is a meeting held by a company’s board members and shareholders to deliberate and address urgent matters that cannot be deferred until the next annual general meeting (AGM). Often referred to as emergency general meetings, EGMs are convened irregularly when a specific issue requires immediate attention from the board and shareholders.

What is the purpose of an EGM?

EGMs are special general meetings that are called in between AGMs. These assemblies foster rapid decision-making and corporate transparency by ensuring collaborative and urgent decisions are made. 

In most cases, EGMs are called for the following reasons:

Who can call an EGM?

While EGMs are treated as unrehearsed meetings, they still follow legal rules to ensure compliance and governance. So who can call an EGM? Depending on the company’s constitution or governing documents, three parties can summon EGMs. First, the board of directors has the authority to call an EGM if they believe an urgent matter requires shareholder input or approval. Equally, the shareholders holding a certain percentage (often 10% or more) can request an EGM. Lastly, in some cases as outlined in the bylaws, other authorized individuals or groups, like the company secretary, can call for an EGM.

Furthermore, agenda-setting and voting are integral parts of EGMs. The agenda of the meeting should focus on the specific issue that necessitates the EGM. Shareholders may be asked to vote on major decisions and approval via a show of hands or proxy voting.

What is the difference between an AGM and an EGM?

As mentioned, annual general meetings and extraordinary general meetings differ primarily in their timing — AGMs are held regularly whereas EGMs are called at any time to address pressing issues. Here are the key differences of both general meetings:

EGM Notice Period

The notice period for an EGM refers to the minimum number of days that must be given to the participants before the meeting takes place. Typically, the notice period for an EGM is (a) 14 to 21 days as a requirement in various jurisdictions, or (b) shorter notice, in situations that a majority of shareholders agree. Shorter EGM notice periods require special approval, like a 95% majority of shareholders consenting to such notice.

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