EGM

An extraordinary general meeting (EGM) of a company is a general meeting of all members of a company (this usually means shareholders) other than the AGM.

Like an AGM, an EGM gives shareholders a chance to vote on important decisions. An EGM may be called at any time. An EGM is therefore called when a decision needs to be made that cannot wait for the next AGM. There are also some decisions that, by law or by a company's articles, require an EGM: in this case the EGM may take place immediately before or after the next AGM.

An EGM is called by the directors of a company. Shareholders with a stake of over 10% (in combination) may force an EGM.

Reasons for calling an EGM include:

• approving a major acquisition
• allowing major shareholders to arrange the removal directors with whom they have disagreed
• changing the name of the company
• approving major changes to a company's financial structure that require a reduction or increase in share capital.