Hello, What’s an EGM Anyway? 🤔
Picture this: It’s a quiet Tuesday afternoon at your company. Everyone’s going about their business when suddenly – BAM! A wild Extraordinary General Meeting (EGM) appears. Unlike its annual counterpart, the EGM is an unplanned, impromptu fiesta of corporate governance.
Under the Companies Act 2006, an EGM is any meeting of company members that is not an Annual General Meeting (AGM). Think of it as the sort of pop quiz in high school that everyone dreads but is crucial for your grades. Only this time, it’s your company’s future at stake! 📈🎩
Why Call for an EGM? 📞
Suppose you’re a director and you feel like mixing things up, you’ve got the power to call an EGM whenever you fancy. Just pick up the Company Emergency Bat-Phone and arrange it. But wait, it’s not just directors who hold this power!
Power to the Shareholders ✊
If members hold not less than 10% of the shares, they can also demand an EGM. Imagine it like a mutiny on a ship, only instead of sailing to treasure islands, you’re steering corporate strategy.
Caught in the Matrix? Auditor Power! 🤯
A resigning auditor can set off an EGM too. They might just fire up the metaphorical beacons of Gondor by insisting, “We need to talk…”.
The Elements of Surprise 🎉
A proper EGM requires notice – in hard copy, electronic form, or via a website. No one likes a surprise quiz without warning. The Companies Act 2006 insists on an appropriate heads-up, so everyone can come properly equipped with their Robust Decision-Making Armor.
graph LR
A[Requisition of EGM] -->|> 10% Shares| B[EGM Called]
A1[Requisition by Directors] --> B
A2[Resigning Auditor's Request] --> B
B --> C[Hard-Copy Notice]
B --> D[Electronic Notice]
B --> E[Website Notification]
The Marvel of Written Resolutions 📜
Thankfully, not all decisions need the drama of a physical meeting. The 2006 Act allows for most decisions to be made by written resolution, saving everyone from obligatory donut parties.
graph TD
A[Decision Required] -->|Possible via Written Resolution| B[Members Sign]
B --> C[Decision Implemented]
A -->|Can't Mail it in?| D[EGM Called]
D --> E[Decision Made at EGM]
So, whether it’s to hire a new CEO, approve a major financial decision, or simply because everyone loves a good non-annual tête-à-tête, EGMs are where the unexpected and pivotal moments of corporate life unfold!
Quiz Time! 🧠
Let’s see if you’ve been paying attention…
-
What is an EGM?
- a) A planned meeting held every year
- b) A spontaneous and unscheduled meeting for urgent company matters
- c) A casual coffee meetup for the employees
- d) A board meeting with mandatory costumes
-
Under the Companies Act 2006, who can call for an EGM?
- a) The company janitor
- b) Directors, members with at least 10% shares, and resigning auditors
- c) Only the CEO
- d) The company’s pet mascot 🐶
-
In what form can notice of an EGM be given?
- a) On a paper airplane 🛩
- b) Hard-copy, electronically, or via a website
- c) By carrier pigeon 🕊
- d) Through Morse code
-
How much share is required by members to call for an EGM?
- a) 5%
- b) 15%
- c) 10%
- d) 20%
-
What’s a written resolution?
- a) The latest novel by a corporate-fiction author 📚
- b) Decisions made without a meeting, through written agreement
- c) A long email of apologies
- d) A traditional boardroom handshake agreement 🤝
-
Who cannot call an EGM?
- a) A director
- b) Members holding not less than 10% of shares
- c) A resigning auditor
- d) The company janitor
-
What annual meeting does an EGM not replace?
- a) Birthday Gala 🌟
- b) AGM (Annual General Meeting)
- c) Monthly Pizza Night 🍕
- d) The company’s annual retreat
-
Which Act governs the rules of an EGM?
- a) The Companies Act 2006
- b) The Holy Book of P&L 📖
- c) The “We Do What We Want” Policy Manual
- d) The Galactic Constitution
