What is EGM? When Do Companies Call Extraordinary General Meetings?
EGMs are urgent shareholder meetings called between annual AGMs.
An Extraordinary General Meeting (EGM) is a shareholder meeting called between annual AGMs for urgent decisions that cannot wait. While AGMs are scheduled annually, EGMs can be called anytime for matters requiring immediate shareholder approval.
Common EGM triggers include merger or demerger proposals, large fundraising through preferential allotment, significant related party transactions, change in company objects, and amendments to articles of association.
Who can call an EGM?
The board of directors can call an EGM at any time. Shareholders holding at least 10% of paid-up capital can also requisition an EGM. NCLT can direct a company to hold one.
What decisions typically require EGMs?
Scheme of arrangement (merger, demerger). Preferential allotment of shares. Change in memorandum of association. Conversion of preference shares. Any special resolution too urgent for the next AGM.
Track EGM announcements and resolutions on Stockk Equity with corporate action monitoring. Get guidance on corporate events from Stockk Advisory.
Investments in securities market are subject to market risks. This article is for educational purposes only and does not constitute investment advice. INDIRA SECURITIES PRIVATE LIMITED : SEBI REG. NO.: INZ000188930, NSE TMID: 12866, BSE TMID: 663, CDSL DPID: 17000, MCX TM ID: 56470, NCDEX TM ID: 01277, CDSL REG.NO.: IN-DP-90-2015, CIN:U67120MP1996PTC085111, RA SEBI REG. No.: INH000023269, IA SEBI REG No.: INA000021410. For any complaints pertaining to securities broking please write to [email protected], for DP related to [email protected].
Frequently Asked Questions
Should I be worried when my company calls an EGM?
Not always. EGMs for growth capital or strategic mergers can be positive. EGMs for distress-related decisions require caution. Read the EGM notice carefully.
Can I vote remotely at EGMs?
Yes. E-voting is mandatory for all general meetings of listed companies. Use StockkAsk at stockk.trade/stockkask for meeting schedules and agenda details.
How is notice given for EGM?
Listed companies must give at least 21 clear days notice for EGMs. The notice includes the agenda and resolutions proposed.
Can EGM resolutions be challenged?
Dissenting shareholders can approach NCLT within 90 days if they believe the resolution is prejudicial.
How often can EGMs be called?
No limit on frequency. Active corporate restructuring may require multiple EGMs in a year.
Investments in securities market are subject to market risks. This article is for educational purposes only and does not constitute investment advice.
INDIRA SECURITIES PRIVATE LIMITED : SEBI REG. NO.: INZ000188930, NSE TMID: 12866, BSE TMID: 663, CDSL DPID: 17000, MCX TM ID: 56470, NCDEX TM ID: 01277, CDSL REG.NO.: IN-DP-90-2015, CIN:U67120MP1996PTC085111, RA SEBI REG. No.: INH000023269, IA SEBI REG No.: INA000021410
