EGM Notice Period, Shorter Notice.

ROC EGM Notice Period, Shorter Notice.

What is EGM?

An Extraordinary General Meeting (EGM) is a meeting held by a company or an organization to deliberate upon matters that require the urgent attention of senior executives, the board of directors, and all shareholders and cannot be deferred until the next scheduled annual general meeting. The EGM is convened at an irregular time to address a crisis.

Who has to call for EGM?

• An Extraordinary General Meeting (EGM) is a meeting held by a company to deliberate upon matters that require the urgent attention of senior executives, the board of directors, and all shareholders and cannot be deferred till the next scheduled annual general meeting.
• According to the Indian Companies Act, 2013, an EGM can be convened by the board as well as by specific members/shareholders of the company that fulfills certain criteria.
• Usually, the EGM is conducted by the chairman who reads out the resolutions, addresses the questions and concerns of the members, oversees the voting, and declares the results.

When has to be done?

EGM Notice Period

On receipt of requisition the Board of Directors shall proceed to call Extra Ordinary General Meeting within 21 days from the date of the deposit of requisition, on a date, which shall not be later than 45 days of the date of deposit of requisition.An EGM can be held at a national holiday and outside of business hours, which is not the case with an AGM.

EGM Shorter Notice

Notice : a general meeting can be called  by  giving  shorter  notice  if  consent  is  given  by  at  least  95%  of  members  entitled to vote at such meeting.

The following Procedure to be followed to Hold an EGM.

Before calling an EGM, the board of directors finalizes the resolutions to be deliberated by members and/or shareholders in the meeting. The members are to be informed of the resolutions and their importance well in advance so that they can research the matter and effectively express their opinions and concerns in the meeting.

Unless otherwise stated in the company’s bylaws, at least five members must be personally present in an EGM in case of a public company, and at least two in case of any other company.Usually, the EGM is conducted by the chairman who reads out the resolutions. The board, expected to possess a thorough knowledge of the situation, appraises the members of the benefits of the resolution and addresses their questions.

Votes are cast by the members in the interest of the shareholders and the company, and the result is declared. Members who are unable to attend the EGM may delegate their voting power to another member, known as a “proxy.” The rules regarding proxy votes vary from one organization to another.