Definition
Extraordinary General Meeting (EGM) – An Extraordinary General Meeting, often just termed as EGM, is a shareholder assembly that is not the company’s annual general meeting (AGM). It is convened to address urgent matters that cannot await the next scheduled AGM. Typically, this involves significant business affairs such as amendments to the company’s constitution, mergers and acquisitions, or other major strategic decisions that require timely shareholder approval outside of the normal business cycle.
Purpose and Processes
The EGM serves as the Thor’s Hammer in the corporate toolbox, summoned only when mighty corporate decisions loom on the horizon that demand immediate and powerful shareholder engagement. Think of it as a corporate bat signal, if you will, that lights up to gather the cohort of shareholders for matters of great import.
Calling an EGM
Initiating an EGM typically requires a formal request by a stipulated quota of shareholders, often laid down in the company’s statutes or bylaws. This percentage varies, but it shows democracy in action—corporate style!
Agenda and Notice
The agenda for an EGM is usually singular, focusing on one major issue. The notice for such a meeting is issued to all shareholders, ensuring compliance with legal timelines and informing everyone about the thrilling plot twist in the corporate narrative.
Conducting the Meeting
At the EGM, every shareholder is a VIP. Their voices equal their votes, and these votes can steer the ship in new directions. The meeting is often a drama worth watching, featuring debates, discussions, and decisions that might feel more intense than your average blockbuster showdown.
Related Terms
- Annual General Meeting (AGM): The regularly scheduled shareholder fest, discussing yearly financial statements and electing the board of directors.
- Proxy Voting: The stunt double for shareholders, whereby votes are cast in absentia, allowing decisions without physical presence.
- Special Resolution: A document often starring in EGMs, needing a supermajority to pass, and playing a pivotal role in major corporate decisions.
Further Reading
For those who wish to dive deeper into the enthralling world of corporate meetings and shareholder shenanigans, consider these books:
- “Robert’s Rules of Order” by Henry M. Robert – Your guide to the ceremonial saga of meetings.
- “Corporate Governance” by Robert A. G. Monks and Nell Minow – A deep dive into the powers-that-be within the theater of operations known as corporate governance.
In the enchanting world of business, EGMs play a crucial role, ensuring that urgent matters receive the immediate attention they deserve, keeping the corporate ship navigating smoothly through the turbulent seas of commerce.
