Definition
Extraordinary General Meeting (EGM)
An EGM is a shareholders' meeting held outside the AGM cycle to decide urgent or special matters.
An EGM is convened by the board, or on the requisition of shareholders holding a specified stake, to consider matters that cannot wait for the next AGM — such as a major fund-raise, a merger, a change in capital structure, or the removal of a director. Resolutions are passed by ordinary or special majority depending on the matter.
Like the AGM, an EGM of a listed company must offer e-voting. EGMs are where many of the most significant corporate decisions, requiring shareholder approval, are taken between annual meetings.
Related terms
- Annual General Meeting (AGM)An AGM is the yearly meeting at which a company's shareholders vote on key matters such as accounts, dividends and director appointments.
- Postal BallotA postal ballot lets shareholders vote on resolutions remotely, without attending a physical meeting.
- E-VotingE-voting is the electronic casting of votes by shareholders on company resolutions, before or during a general meeting.
Plain-English explainer from The Dispatch Investors Encyclopedia. General information, not financial advice.