🚀 Extraordinary General Meeting (EGM): Learn What Makes These Meetings So ‘Extra’ordinary!
What is an Extraordinary General Meeting (EGM)?
An Extraordinary General Meeting (EGM) isn’t just another dull corporate meetup that worships PowerPoint slides. Instead, it’s an unscheduled, all-hands-on-deck blockbuster event in the company world! 🚀 Under the Companies Act 2006, an EGM is a meeting of company members that’s so important it can’t wait for the annual general meeting (AGM). These meetings are the epitome of “urgent business.”
Meaning and Significance
Extraordinary General Meetings are called when something crucial needs immediate attention—think major mergers, director appointments, or amendments to the company’s articles of association. EGM brings an element of unpredictability and suspense, like that unexpected twist in your favorite Netflix series.
::: tip Key Takeaways
- An EGM is an unscheduled, urgent meeting of a company’s members.
- It can be initiated by directors, members holding at least 10% of shares, or a resigning auditor.
- Notice of the meeting must be given in hard copy, electronic form, or via a website.
- Many decisions once confined to general meetings can now be made via written resolution. :::
Importance of EGMs
The importance of EGMs can be summed up in one word: action! An EGM is the fast lane on the corporate highway. It allows companies to tackle urgent matters with speed 💼 and efficiency.
Types of EGMs
Who knew meetings could come in flavors? Here are a few types of EGMs:
- Crisis Management EGMs: Called when immediate corrective decisions are needed.
- Approval EGMs: Meetings to approve major changes like mergers or significant financial decisions.
- Member-Requisitioned EGMs: These rock ’n roll meetings are initiated by members holding not less than 10% of shares.
Example Scenarios
- The Rapid Resignation Scenario: Alice, the company’s star CFO decides to quit unexpectedly. Directors call an EGM to discuss and quickly approve her successor.
- The Merger Madness: Tech Titans Inc. wants to merge with Geeky Gadgets Ltd. An EGM is summoned to vote on the merger agreement. Don’t forget to pop that popcorn—it’s a nail-biter!
Funny Quote Alert
“An EGM is like a fire drill where everyone actually turns up.” 🔥
Related Terms
- Annual General Meeting (AGM): The scheduled, yearly shareholder meeting for discussing routine business.
- Written Resolution: A method by which members can sign and pass resolutions without holding a meeting.
Comparison: EGM vs. AGM
Pros of EGM:
- Handles urgent matters swiftly.
- Provides flexibility outside the AGM schedule.
Cons of EGM:
- Can be disruptive if called too often.
- May cause shareholder fatigue.
Quizzes
Take a quick quiz to gauge your newfound knowledge. 🌟
And there you have it! The extraordinary world of EGMs, explained with a dash of fun and a smidge of humor. So, the next time you hear about an EGM, you’ll know it’s not just another day at the office—it’s potentially the cliffhanger episode in the company’s ongoing series.
🚀 Stay curious, keep learning, and don’t forget to smile!
Author: Eli Enterprise
Date: 2023-10-11
Inspirational Farewell: “Keep your meetings snappy and your minutes happy!”
