AGM vs EGM: What's Different? - Lawpath

The key difference is that an AGM is a scheduled meeting which must be held annually. On the other hand, an EGM is an ad-hoc meeting convened in ... AGMvsEGM:What’sDifferent? Feb24,2020 ReadingTime:3minutes WrittenbyLauraWorrad Corporationsholdbothanannualgeneralmeeting(AGM)andanextraordinarygeneralmeeting(EGM)fordifferentpurposes.Theyarebothusefulopportunitiestodiscussbusinessmattersanddecisions.Specificlawsgoverntheoperationofbothmeetings.Readourguidetouncoverthedifferencebetweenanannualgeneralmeetingandanextraordinarygeneralmeeting. WhatisanAnnualGeneralMeeting(AGM)? Inshort,corporationsholdannualgeneralmeetings(AGM)yearlyaccordingtoameetingschedule.Generallyspeaking,atanAGM,companymembersanddirectorsmeettodiscussthecompany’saffairs. TheCorporationsAct2001(Cth)governstherequirementssurroundingAGM’s.Forinstance,apubliccompanymustholdanAGMonceayear.Youmustholdwithin5monthsoftheconclusionofthecompaniesfinancialyear.Further,apubliccompanymustholdanAGMwithin18monthsafteritsregistration.Alternatively,proprietarycompaniesarenotlegallyrequiredtoholdanAGM.Itisimportantformembersatthemeetingtotakeminutes.YoucancustomiseourShareholderMeetingMinutesforfree. Findyourperfectlawyernow Getafixed-feequotefromAustralia’slargestlawyermarketplace Findalawyer WhatisanExtraordinaryGeneralMeeting(EGM)? Ontheotherhand,anextraordinarygeneralmeeting(EGM)isanunscheduledmeeting.Ultimately,youwouldconveneanEGMtoconsiderurgentornewmattersthatcannotwaituntilthenextordinarymeeting.Youmayhavehearditreferredtoasaspecialmeeting. TheCorporationsAct2001(Cth)alsoincludedtherulessurroundinganEGM.Forinstance,ifyouwouldliketoconveneanEGMasamember,youmustholdatleast5%ofthevotescastatageneralmeeting.Further,ifyouareadirector,youcanconveneameeting. RequirementsofMeetings Thereareanumberoflegalrequirementssurroundingtheoperationofmember’smeetings.Forinstance: NoticeofMeetings ForbothanAGMandEGM,youmustgivenoticeofthemeetingtomembers.Forexample,theinformationrequiredinanoticeincludestheplace,date,timeandtechnologyavailable.Youmustoutlinethegeneralnatureofbusinesstobediscussed,anyspecialresolutionstobeproposedandproxyinformation.Moreover,youmustgivemembersanddirectorsatleast21daysnoticeofameetingifyouarecompanywhichisnotlisted. Quorum Youmayhaveheardofthetermquorum,butwhatdoesitmean?Essentially,aquorumistheminimumnumberofpeoplethatmustbeinattendanceforavalidmeetingtobeheld.Thequorumforageneralmeetingistwomembers.Youshouldnotethatthesemembersmustbepresentforthedurationofthemeeting.Ifmembersarenotpresentwithin30minutesofthemeeting’sscheduledtime,youmustadjournthemeeting. Voting AnimportantpartofbothanAGMandEGMisvoting.Ultimately,yourvotingpowerdependsonthevotingrightsattachedtoyourshares.Yourcompanyconstitutiongenerallyoutlinesthevotingrightsattachedtoshares.Generally,votesaretakenbyashowofhands. YoucancustomiseourConstitutionforfree. Ifpermittedunderthecompanyconstitution,youcanchoosetoappointaproxy.Aproxycanbeelectedtovoteonyourbehalf.Generallyspeaking,toensureallproxiesareincludedinthevote,theyshouldonlybeusedwhenapolliscast. FinalThoughts Toconclude,companiesholdbothanAGMandEGMfordifferentpurposes.ThekeydifferenceisthatanAGMisascheduledmeetingwhichmustbeheldannually.Ontheotherhand,anEGMisanad-hocmeetingconvenedinresponsetoanurgentmatter.Whilethetwomeetingsholddifferentpurposes,thelegalrequirementssurroundingtheiroperationaresimilarinnature.Ifyourequireassistanceinunderstandingyourlegalobligations,consultaCompanyLawyer. Don’tknowwheretostart?Contactuson1800529728tolearnmoreaboutcustomisinglegaldocumentsandobtainingafixed-feequotefromAustralia’slargestlawyermarketplace. PopularGuides DirectorIdentificationNumbers:TheNewLawontheHorizonForCompanyDirectors ShareSaleContract:AGuidetoBuyingandSellingCompanyShares(2022Update) WhatAreTheBenefitsofWorkingUnderanABN? 15TypesOfLegalDocumentsThatAreDueforanUpdatein2022[Australia] Getthelatestnews Selectindustry TechStartup Consulting Agency Accounting eCommerce Medical Engineering Restaurant/Cafe Legal Other Signuptoournewsletter Byclicking‘Signuptonewsletter’youareagreeingtotheLawpathTermsandConditions description Createandaccessdocumentsanytime,anywhere Signupforoneofourlegalplanstogetstarted. Getstarted Youmayalsolike PersonalLiabilitiesOfCompanyDirectors:EverythingYouNeedtoKnow Editor'sPick,LegalguidesHowtopreventyourselfasacompanydirectorfrombeingpersonallyliable:101Guide HowDoesaCompanyIssueCorporateShares? Blog,Finance&Admin,StartingaBusinessThinkingofissuingnewsharesforyourcompany?Readbelowtofindoutthevariouswaysyoucandoit. WhatIstheDifferenceBetweenPrivacyandConfidentialityinAustralia? LegalguidesInterestedinlearningmoreaboutthedifferencesbetweenprivacyandconfidentiality?Readalong