Annual General Meeting vs. Extraordinary General Meeting: What's the Difference?
Edited by Aimie Carlson || By Harlon Moss || Published on February 8, 2024
An annual general meeting (AGM) is a yearly gathering of a company's shareholders, while an extraordinary general meeting (EGM) is convened for urgent matters outside the regular schedule.
Key Differences
AGMs are regularly scheduled, typically annually, for standard organizational matters like electing the board of directors and presenting financial statements. EGMs, however, are held as needed, often for urgent or unexpected issues requiring shareholder approval.
The AGM is a planned event for routine company affairs, such as approving annual accounts and director appointments. The EGM is called for extraordinary situations, like addressing a merger or a major business change, often on short notice.
AGMs are held once a year, as the name suggests, and are usually predictable in timing. EGMs are convened without a regular schedule, triggered by special circumstances that demand immediate attention.
The agenda of an AGM is often broad, covering a wide range of standard business topics. In contrast, EGMs typically have a focused agenda, dealing specifically with the issue that necessitated the meeting.
Both AGMs and EGMs are governed by a company's bylaws and relevant corporate laws, but the legal requirements for calling, conducting, and voting in these meetings can differ, reflecting their distinct purposes.
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Comparison Chart
Frequency
Held annually
Convened as needed
Purpose
Routine company affairs
Urgent or special matters
Scheduling
Regularly scheduled
Unscheduled, often on short notice
Typical Agenda Items
Financial reports, elections
Specific issues like mergers or crises
Legal Requirements
Standard requirements for annual meetings
Special requirements for urgent meetings
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Annual General Meeting and Extraordinary General Meeting Definitions
Annual General Meeting
AGM is a yearly meeting of shareholders to discuss company affairs.
The company's AGM discussed the annual financial results and elected new board members.
Extraordinary General Meeting
EGM allows shareholders to decide on unexpected significant business events.
The EGM voted on a major acquisition that arose outside the usual business cycle.
Annual General Meeting
AGM is an obligatory annual assembly for reviewing fiscal and administrative reports.
During the AGM, shareholders reviewed the CEO's performance and future strategies.
Extraordinary General Meeting
EGM is convened for timely shareholder input on unforeseen situations.
The EGM was called to amend the bylaws in light of new legal requirements.
Annual General Meeting
AGM is a statutory meeting for updates on corporate governance and operations.
At the AGM, the board presented a new corporate governance framework.
Extraordinary General Meeting
EGM is a special meeting called for urgent or extraordinary company matters.
An EGM was convened to discuss the sudden resignation of the CEO.
Annual General Meeting
AGM is an annual event for corporate transparency and accountability.
The AGM provided a detailed account of the company's environmental initiatives.
Extraordinary General Meeting
EGM serves as a platform for crisis management and urgent decision-making.
The EGM focused on strategies to handle the unexpected regulatory changes.
Annual General Meeting
AGM serves as a formal platform for shareholder voting on corporate decisions.
The AGM saw a majority vote in favor of the proposed merger with a rival company.
Extraordinary General Meeting
EGM is an unscheduled meeting to address immediate and critical issues.
The company held an EGM to approve emergency funding during the financial crisis.
FAQs
What is an EGM?
An unscheduled meeting for urgent or extraordinary company matters.
Who can call an EGM?
Typically, the board of directors or a significant shareholder group.
What happens if I miss an AGM?
You can usually access meeting minutes or recordings later.
What is an AGM?
It's an annual meeting for shareholders to discuss yearly reports and elect directors.
What triggers an EGM?
Urgent matters like leadership changes or major decisions.
Is attendance mandatory at AGMs?
Not mandatory, but strongly recommended for shareholders.
Are AGMs public events?
Usually, they are only open to shareholders and company officials.
Can EGMs be held virtually?
Yes, if the company's bylaws permit.
Are EGMs common?
Less common than AGMs, as they are only for urgent matters.
How are votes counted at AGMs?
Typically, by a show of hands or electronic voting.
How often is an AGM held?
Annually, as mandated by company bylaws.
Can an AGM be postponed?
Yes, if circumstances require and bylaws allow.
Can any topic be discussed at an EGM?
Only those specified in the meeting notice.
What is the notice period for an AGM?
Varies by company but typically several weeks in advance.
What is a proxy vote in AGMs and EGMs?
A vote cast by someone else on behalf of a shareholder.
Are EGM outcomes binding?
Yes, decisions made are legally binding.
Can AGM agendas be changed last minute?
Typically, no. Agendas are set in advance.
Is shareholder approval always required at EGMs?
Yes, for the matters being discussed.
Can decisions be made without an EGM?
Depending on the bylaws, some decisions may require an EGM.
Who can attend EGMs?
Shareholders and certain company officials.
About Author
Written by
Harlon MossHarlon is a seasoned quality moderator and accomplished content writer for Difference Wiki. An alumnus of the prestigious University of California, he earned his degree in Computer Science. Leveraging his academic background, Harlon brings a meticulous and informed perspective to his work, ensuring content accuracy and excellence.
Edited by
Aimie CarlsonAimie Carlson, holding a master's degree in English literature, is a fervent English language enthusiast. She lends her writing talents to Difference Wiki, a prominent website that specializes in comparisons, offering readers insightful analyses that both captivate and inform.
