Extraordinary General Meeting (EGM) Definition - Investopedia

An extraordinary general meeting (EGM) refers to any shareholder meeting called by a company other than its scheduled annual meeting. · The extraordinary general ... Investing Stocks WhatIsanExtraordinaryGeneralMeeting? Anextraordinarygeneralmeeting(EGM) isashareholdermeetingcalledotherthanacompany’sscheduledannualgeneralmeeting(AGM).AnEGMisalsocalledaspecialgeneralmeetingoremergencygeneralmeeting. KeyTakeaways Anextraordinarygeneralmeeting(EGM)referstoanyshareholdermeetingcalledbyacompanyotherthanitsscheduledannualmeeting.Theextraordinarygeneralmeetingisutilizedtodealwithurgentmattersthatcomeupbetweenannualshareholders'meetings.EGMsareoftenconsideredforemergencymeasuressuchasresolvinganimmediatelegalmatterortheremovalofakeymanager. UnderstandinganExtraordinaryGeneralMeeting(EGM) Inmostcases,theonlytimeshareholdersandexecutivesmeetisduringacompany’sannualgeneralmeeting,whichusuallyoccursatafixeddateandtime. However,certaineventsmayrequireshareholderstocometogetheronshortnoticetodealwithanurgentmatter,oftenconcerningcompanymanagement.Theextraordinarygeneralmeetingisusedasawaytomeetanddealwithurgentmattersthatariseinbetweentheannualshareholders'meetings. AnEGMmightbecalledtodealwithanyofthefollowing: TheremovalofanexecutiveAlegalmatterAnymatterthatcan'twaituntilthenextshareholdersmeeting Anotherdifference betweenanannualgeneralmeetingandanextraordinarygeneralmeetingisthatanannualgeneralmeetingcanonlybeheldduringbusinesshoursandnotonanationalholiday,whileanEGMcanbecarriedoutonanydayincludingholidays.Also,whileacompany’sboardcanonlycallanAGM,anEGMcanalsobecalledbytheboardontherequisitionofshareholders,requisitionist,ortribunal. AnExampleofanExtraordinaryGeneralMeeting Extraordinarygeneralmeetingsoccurforavarietyofreasons,butthemeetingisusuallycalledtodiscussthepotentialremovalofanexecutive. InDecember2017,theLondonStockExchange(LSE)heldanextraordinarygeneralmeeting,regardingclaimsthatitschair,DonaldBrydon,pushedoutformerchiefexecutiveXavierRolet.RoletsteppeddownearlyinNovember2017. AlthoughsomeEGMsoccuroutsideofnormalbusinesshours,theLondonStockExchange'sEGMtookplaceonanon-holidayTuesday.ThemotionwassparkedbyactivistinvestorTheChildren’sInvestmentFundManagement(TCI),whichhadgotten20.9%votesinfavorofremovingBrydon.However,theresultoftheEGMwasthatBrydonremainedinhisposition. TheAnnualGeneralMeeting(AGM) Anannualgeneralmeeting(AGM)isamandatoryyearlygatheringofacompany'sinterestedshareholders.AtanAGM,thedirectorsofthecompanypresentanannualreportcontaininginformationforshareholdersaboutthecompany'sperformanceandstrategy. Shareholderswithvotingrightsvoteoncurrentissues,suchasappointmentstothecompany'sboardofdirectors,executivecompensation,dividendpayments,andtheselectionof auditors.TheexactrulesgoverninganAGMvaryaccordingtojurisdiction.Asoutlinedbymanystatesintheirlawsof incorporation,bothpublicandprivatecompaniesmustholdAGMs,thoughtherulestendtobemorestringentforpubliclytradedcompanies. Publiccompaniesmustfileannualproxystatements,knownasFormDEF14A,withtheSecuritiesandExchangeCommission(SEC). Thefilingwillspecifythedate,time,andlocationoftheannualmeeting,aswellasexecutivecompensationandanymaterialmattersofthecompanyconcerningshareholdervotingandnominateddirectors. CompareAccounts AdvertiserDisclosure × TheoffersthatappearinthistablearefrompartnershipsfromwhichInvestopediareceivescompensation.Thiscompensationmayimpacthowandwherelistingsappear.Investopediadoesnotincludealloffersavailableinthemarketplace. Provider Name Description RelatedTerms AnnualGeneralMeeting(AGM) Anannualgeneralmeeting(AGM)isamandatoryannualassemblyofacompany'sexecutives,directors,andinterestedshareholders. more InformationCircular Aninformationcircularisadocumentforacompany’sshareholders,outliningimportantagendatopicsfortheannualorspecialshareholders'meeting. more WhatIsaBallot? Aballotisadocumentthatashareholderofacompanyfillsintovoteoncorporatematterscontainedinaproxyfilingfortheannualmeeting. more ShareholdersShouldCastTheirVotesbyProxyandBeHeard Ifyouareunabletoattendyourcompany'sannualgeneralmeeting,considerusingaproxytorepresentyou. more ProxyVoteDefinition Aproxyvoteisaballotcastbyonepersonorfirmonbehalfofanother.Proxyvotesareusedbyshareholderswhentheywantsomeoneelsetovoteontheirbehalfonaparticularcompanymatter. more SECFormPRE14A SECFormPRE14AisaformthatmustbefiledwiththeSecuritiesandExchangeCommissiononmattersrequiringashareholdervote. more PartnerLinks RelatedArticles FinancialStatements WhyInvestorsShouldLookattheProxyStatement Strategy&Education TheTop8MostTradableCurrencies SustainableInvesting HowEngineNo.1isDrivingChangeasanActivistShareholder Strategy&Education SmartContractDisputeResolutionDefinition InvestingEssentials HowtoUseInsiderandInstitutionalStockOwnership M&A TheCorporateMerger:WhattoKnowAboutWhenCompaniesComeTogether