Extraordinary General Meeting (EGM) 😲: Gather 'Round, We've Got Serious Stuff to Discuss!

Learn about the mercurial nature of the Extraordinary General Meeting (EGM), an impromptu yet pivotal company gathering, often overshadowed by its more predictable sibling, the Annual General Meeting. Dive into the quirky world of corporate decision-making, and understand when and how these surprise assemblies spring into action!

Hello, What’s an EGM Anyway? πŸ€”

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! πŸ“ˆπŸŽ©

Why Call for an EGM? πŸ“ž

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, β€œWe need to talk…”.

The Elements of Surprise πŸŽ‰

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 πŸ“œ

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 tΓͺte-Γ -tΓͺte, EGMs are where the unexpected and pivotal moments of corporate life unfold!

Quiz Time! 🧠

Let’s see if you’ve been paying attention…

  1. 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
  2. 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 🐢
  3. In what form can notice of an EGM be given?

    • a) On a paper airplane πŸ›©
    • b) Hard-copy, electronically, or via a website
    • c) By carrier pigeon πŸ•Š
    • d) Through Morse code
  4. How much share is required by members to call for an EGM?

    • a) 5%
    • b) 15%
    • c) 10%
    • d) 20%
  5. What’s a written resolution?

    • a) The latest novel by a corporate-fiction author πŸ“š
    • b) Decisions made without a meeting, through written agreement
    • c) A long email of apologies
    • d) A traditional boardroom handshake agreement 🀝
  6. 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
  7. What annual meeting does an EGM not replace?

    • a) Birthday Gala 🌟
    • b) AGM (Annual General Meeting)
    • c) Monthly Pizza Night πŸ•
    • d) The company’s annual retreat
  8. Which Act governs the rules of an EGM?

    • a) The Companies Act 2006
    • b) The Holy Book of P&L πŸ“–
    • c) The β€œWe Do What We Want” Policy Manual
    • d) The Galactic Constitution
--- primaryColor: 'rgb(121, 82, 179)' secondaryColor: '#DDDDDD' textColor: black shuffle_questions: true --- ### What is an EGM? - [ ] a) A planned meeting held every year - [x] 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 > **Explanation:** An Extraordinary General Meeting (EGM) is an unexpected, impromptu meeting called to address urgent or specific matters that cannot wait until the next Annual General Meeting (AGM). ### Under the Companies Act 2006, who can call for an EGM? - [ ] a) The company janitor - [x] b) Directors, members with at least 10% shares, and resigning auditors - [ ] c) Only the CEO - [ ] d) The company's pet mascot 🐢 > **Explanation:** EGMs can be called by the directors of the company, by members holding at least 10% of the shares, or by a resigning auditor. ### In what form can notice of an EGM be given? - [ ] a) On a paper airplane πŸ›© - [x] b) Hard-copy, electronically, or via a website - [ ] c) By carrier pigeon πŸ•Š - [ ] d) Through Morse code > **Explanation:** To properly notify members of an EGM, the notice can be sent in hard-copy form, electronically, or made available on a website. ### How much share is required by members to call for an EGM? - [ ] a) 5% - [ ] b) 15% - [x] c) 10% - [ ] d) 20% > **Explanation:** Members need to hold at least 10% of the shares to requisition or demand an EGM. ### What’s a written resolution? - [ ] a) The latest novel by a corporate-fiction author πŸ“š - [x] b) Decisions made without a meeting, through written agreement - [ ] c) A long email of apologies - [ ] d) A traditional boardroom handshake agreement 🀝 > **Explanation:** A written resolution is a method of making decisions without the need for a physical meeting. Once the required agreement is obtained in writing, the decision is considered official. ### Who *cannot* call an EGM? - [ ] a) A director - [ ] b) Members holding not less than 10% of shares - [ ] c) A resigning auditor - [x] d) The company janitor > **Explanation:** Whilst directors, qualifying shareholders, and resigning auditors have the authority to call an EGM, the company janitor does not have this power. ### What annual meeting does an EGM *not* replace? - [ ] a) Birthday Gala 🌟 - [x] b) AGM (Annual General Meeting) - [ ] c) Monthly Pizza Night πŸ• - [ ] d) The company’s annual retreat > **Explanation:** An EGM is an extraordinary meeting and does not replace the regularly scheduled Annual General Meeting (AGM). ### Which Act governs the rules of an EGM? - [x] a) The Companies Act 2006 - [ ] b) The Holy Book of P&L πŸ“– - [ ] c) The β€œWe Do What We Want” Policy Manual - [ ] d) The Galactic Constitution > **Explanation:** The Companies Act 2006 outlines the regulations and requirements for calling and holding EGMs.
Wednesday, June 12, 2024 Monday, January 15, 2024

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