It would be an Extraordinary or Special MeetingAnextraordinary general meeting (EGM) refers to any shareholder meeting called bya company other than its scheduled annual meeting. The extraordinary generalmeeting is utilized to deal with urgent matters that come up between annualshareholders' meetings.
Whocan call the extra ordinary meeting?
Sub-section(1) of section 100 empowers the board of directors to callextraordinary general meeting as and when it is deemed necessary. The board maycall such extraordinary meeting depending upon the exigencies of the conduct ofthe business of the company.
Extra-ordinaryGeneral Meeting (Sec 100) - ICSIhttps://icsi.edu › media › portals ›Geeta_Saar_37_Extrao...
Cana shareholder call for a meeting?
Shareholderscan also call a meeting without requesting directors to do so. In thisinstance, the shareholders must hold at least 5% of the votes to call ameeting. In addition, the shareholders who call the meeting must bear theexpenses of holding the meeting.26 July 2022Understanding an ExtraordinaryGeneral Meeting (EGM)
In most cases, the only time shareholders andexecutives meet is during a company’s annual general meeting, which usuallyoccurs at a fixed date and time.
However, certain events may require shareholders tocome together on short notice to deal with an urgent matter, often concerningcompany management. The extraordinary general meeting is used as a way to meetand deal with urgent matters that arise in between the annual shareholders'meetings.
An EGM might be called to deal with any of thefollowing:
- The removal of an executive
- A legal matter
- Any matter that can't wait until the next shareholders meeting
An EGM can be carried out on any day includingholidays. Also, while a company’s board can only call an AGM, an EGM can alsobe called by the board on the requisition of shareholders, requisitionist, ortribunal.
