Extraordinary General Meeting (EGM) An Extraordinary General Meeting (EGM) is a special type of meeting that can be called by a company's shareholders to co...
Extraordinary General Meeting (EGM)
An Extraordinary General Meeting (EGM) is a special type of meeting that can be called by a company's shareholders to consider matters that are not covered by the company's regular agenda. These matters can include, but are not limited to, approving major transactions, authorizing the company to incur significant debt, or changing the company's bylaws.
To call an EGM, a company must give notice to its shareholders at least 21 days before the meeting. The notice must include the date, time, location, and agenda of the meeting.
At an EGM, all shareholders have the right to attend and vote on the matters being considered. The company must also follow specific procedural rules when voting at an EGM, such as the use of ballots and the prohibition of proxy voting.
EGMs are typically held more frequently than regular AGMs, as they allow shareholders to address urgent matters that require immediate attention. They can also be used to implement major strategic changes that may have a significant impact on the company.
EGMs are important as they allow shareholders to have a say in the direction of the company and to ensure that important matters are considered and voted on in a fair and transparent manner