Extraordinary General Meeting (EGM)
EGMs are convened to address urgent or exceptional issues that cannot wait until the next Annual General Meeting (AGM). They are characterized by their ability to handle stringent rules and enable quick decision-making on matters such as mergers, acquisitions, significant rule changes, or other critical issues, ensuring compliance and timely resolutions.
For Example, An EGM called by PQR Corporation to seek shareholder approval for a significant investment proposal.
Features of Extraordinary General Meeting:
- EGMs are specifically convened to address urgent or exceptional issues that cannot be postponed until the next scheduled meeting.
- EGMs have specific notice periods and agenda statements tailored to the urgent matters at hand.
- These meetings cover controversial topics such as mergers, acquisitions, or alterations to the company’s rules that require immediate attention.
Advantages of Extraordinary General Meeting:
- EGMs allow for swift action on issues that require time-critical decisions, preventing delays and ensuring timely responses.
- They provide a platform for addressing unforeseen difficulties or emergencies that arise between regular meetings.
- EGMs ensure the fulfillment of legal requirements for making emergency rulings or decisions.
Disadvantages of Extraordinary General Meeting:
- Due to their unpredictable nature, EGMs are non-regular operations, making it challenging to plan and coordinate effectively.
- Convening an EGM demands significant administrative resources and coordination efforts, potentially increasing operational costs.
- EGMs may experience lower attendance levels compared to AGMs, as they are called for specific urgent issues rather than routine matters.
Types of Meetings in Company Law
In company law, meetings serve as pivotal forums for decision-making, with types ranging from annual general meetings to special board gatherings. Meeting is a crucial part of corporate governance and helps make such multidimensional decisions and communication of company structure. In the area of company law, different types of meetings are the means for various purposes, including transparent process, administration accountability, and fulfillment of requirements of the legal framework.
Table of Content
- Types of Meetings in Company Law
- 1. Statutory Meeting
- 2. Annual General Meeting (AGM)
- 3. Extraordinary General Meeting (EGM)
- 4. Class Meeting
- 5. Board of Directors Meeting
- 6. Committee of Directors Meeting
- 7. Debenture Holders Meeting
- 8. Creditors Meeting
- 9. Creditors and Contributors Meeting
- Conclusion