In Finance, What Is an Extraordinary General Meeting?
Extraordinary general meeting (EGM) refers to the irregular shareholders' meeting convened between two annual shareholders' meetings in accordance with statutory grounds to determine the emergence of major issues of the company that require shareholders' voting temporarily.
EGM
- Chinese name
- EGM
- Foreign name
- Extraordinary general meeting
- Short name
- EGM
- Use
- Decide on major company matters
- by law
- Company Law
- Extraordinary general meeting (EGM) refers to the irregular shareholders' meeting convened between two annual shareholders' meetings in accordance with statutory grounds to determine the emergence of major issues of the company that require shareholders' voting temporarily.
- According to China's company law, the statutory reasons for holding an extraordinary shareholders' meeting of a limited liability company are: on behalf of shareholders with more than 1/10 of the voting rights; proposals from more than 1/3 directors;
- A company limited by shares shall convene an extraordinary shareholders' meeting within two months when the following statutory reasons arise: When the number of directors is less than the required number or 2/3 of the number specified in the company's articles of association. According to the Company Law, a company limited by shares has a board of directors, with 5 to 19 members. Therefore, once the board of directors has less than five members, the company should convene an extraordinary general meeting to elect directors. 2. When the company's unrecovered losses reached 1/3 of the total paid-up share capital. 3 At the request of shareholders who individually or collectively hold more than 10% of the company's shares. 4 When the board considers it necessary. 5. When the Supervisory Board proposed to convene. The agenda of the EGM, which is more concerned by general investors, includes changes in major shareholders, mergers and acquisitions, changes in major persons, and adjustments to dividend policies.
- EGM Shareholders Registration Date
- The equity registration date of the EGM is a set date before the EGM is held. On this day, investors holding company shares will be registered as shareholders and eligible to participate in the EGM voting. Voting on voting matters at the EGM.