An Extraordinary General Meeting (EGM) is a meeting of a company's shareholders that is called for a specific purpose, other than the ordinary business of the company. EGMs are typically called to address urgent or important matters that require the approval of the shareholders, such as a change in the company's articles of association, a proposed merger or acquisition, or a change in the company's management.

Why are EGMs Held?

EGMs are held for a variety of reasons, including:

• To approve changes to the company's articles of association: The articles of association are the governing document of a company and set out the company's rules and procedures. EGMs are often held to approve changes to the articles of association, such as changes to the company's name, its registered office, or its share capital.
• To approve a proposed merger or acquisition: EGMs are also often held to approve proposed mergers or acquisitions. In a merger, two companies combine to form a single entity, while in an acquisition, one company acquires another company and takes control of its assets and operations.
• To approve a change in the company's management: EGMs may also be held to approve a change in the company's management, such as the appointment of a new CEO or board of directors.

Who Can Attend an EGM?

All shareholders of the company are entitled to attend an EGM. However, only shareholders who are registered on the company's share register at the time of the meeting are entitled to vote.

What Happens at an EGM?

The following typically happens at an EGM:

1. The meeting is called to order by the chairman of the board of directors: The chairman of the board of directors opens the meeting and explains the purpose of the meeting.
2. The shareholders are given a chance to discuss the matter at hand: The shareholders are then given a chance to discuss the matter at hand and ask questions of the board of directors.
3. A vote is taken on the matter at hand: A vote is then taken on the matter at hand. The shareholders vote by show of hands or by proxy.
4. The results of the vote are announced: The results of the vote are then announced by the chairman of the board of directors.
5. The meeting is adjourned: The meeting is then adjourned.

What are the Consequences of an EGM?

The consequences of an EGM depend on the outcome of the vote. If the vote is in favor of the matter at hand, then the matter will be approved. If the vote is against the matter at hand, then the matter will not be approved.

Conclusion

EGMs are an important part of the corporate governance process. They allow shareholders to have a say in the important decisions that affect the company. EGMs can also be used to address urgent or important matters that require the approval of the shareholders.

Frequently Asked Questions

1. What is the difference between an EGM and an AGM?

An EGM is a meeting of a company's shareholders that is called for a specific purpose, other than the ordinary business of the company. An AGM is a meeting of a company's shareholders that is held once a year to discuss the company's financial performance and to elect the company's board of directors.

2. Who can attend an EGM?

All shareholders of the company are entitled to attend an EGM. However, only shareholders who are registered on the company's share register at the time of the meeting are entitled to vote.

3. What happens at an EGM?

The following typically happens at an EGM:
* The meeting is called to order by the chairman of the board of directors.
* The shareholders are given a chance to discuss the matter at hand and ask questions of the board of directors.
* A vote is taken on the matter at hand.
* The results of the vote are announced.
* The meeting is adjourned.

4. What are the consequences of an EGM?

The consequences of an EGM depend on the outcome of the vote. If the vote is in favor of the matter at hand, then the matter will be approved. If the vote is against the matter at hand, then the matter will not be approved.

5. How often are EGMs held?

EGMs are held as needed. There is no set frequency for EGMs.