Extraordinary General Meetings (EGM)

An extraordinary general meeting (EGM) is a meeting of the shareholders of a company that is called for a specific purpose other than the ordinary business of the company. EGMs are usually called to approve major changes to the company's constitution, such as a change of name or a change of directors. They can also be called to approve a takeover bid or to wind up the company.

EGMs are governed by the company's articles of association, which set out the rules for calling and holding meetings of shareholders. In most cases, an EGM can only be called by the directors of the company, but in some cases, shareholders may also have the right to call an EGM.

The notice period for an EGM is usually at least 21 days, but this can be shorter in some cases. The notice must include details of the purpose of the meeting and the proposed resolutions that will be voted on.

At an EGM, shareholders can vote on resolutions proposed by the directors or by other shareholders. The resolutions are passed if they are voted for by a majority of the votes cast.

EGMs are important because they allow shareholders to have a say in the affairs of the company. They can be used to approve major changes to the company's constitution or to vote on a takeover bid. EGMs can also be used to remove directors from office or to wind up the company.

If you are a shareholder in a company, it is important to be aware of your rights to attend and vote at EGMs. You can find out more about your rights by reading the company's articles of association.