AGM vs. EGM: What's the Difference?
Edited by Aimie Carlson || By Janet White || Published on February 13, 2024
AGM (Annual General Meeting) is a yearly gathering of a company's shareholders, while EGM (Extraordinary General Meeting) is convened for urgent matters outside the regular meetings.
Key Differences
An AGM (Annual General Meeting) is a mandatory annual assembly of a company's stakeholders. In contrast, an EGM (Extraordinary General Meeting) is called for handling urgent, unforeseen, or special matters that arise between scheduled AGMs.
AGMs are held once a year as per statutory requirements, providing a regular platform for shareholders to discuss annual reports, elections, and other routine business. EGMs, on the other hand, are unscheduled meetings, called any time during the year when urgent decisions or actions are required.
The agenda of an AGM typically includes approval of financial statements, dividend declarations, and board elections. EGMs are focused on urgent issues like mergers, acquisitions, or other significant decisions that cannot wait until the next AGM.
Both AGMs and EGMs are governed by a company's bylaws and regulatory requirements, but AGMs have a more structured, predictable role in corporate governance, whereas EGMs deal with exceptional or crisis situations.
Both meetings involve shareholder participation, AGMs offer a broader view of the company's performance and strategy, whereas EGMs tend to focus on specific issues requiring immediate attention from the stakeholders.
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Comparison Chart
Frequency
Held annually
Held as needed, any time during the year
Purpose
Discuss regular business, e.g., financials
Address urgent, special, or unexpected issues
Notice Period
Longer notice period, as it is scheduled
Shorter notice, due to urgency
Agenda
Standard items like reports, dividends, elections
Specific to the urgent matter at hand
Legal Requirement
Mandatory for most companies
Only when specific situations arise
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AGM and EGM Definitions
AGM
AGM is an opportunity for stakeholder engagement.
The AGM is scheduled in June for shareholders to discuss strategies.
EGM
EGM is convened outside the regular meetings.
An EGM is scheduled next week to discuss the lawsuit settlement.
AGM
AGM is a legal requirement for public companies.
The CEO will present the annual report at the AGM.
EGM
EGM is an unscheduled meeting of shareholders.
The EGM was called to approve the emergency funding.
AGM
AGM serves as a platform for corporate accountability.
At the AGM, shareholders will vote on the proposed merger.
EGM
EGM can be called at any time of the year.
The board announced an EGM to revise the company's bylaws.
AGM
AGM includes election of the board members.
New board members will be elected at the upcoming AGM.
EGM
EGM focuses on specific, extraordinary issues.
The EGM resolved the unexpected leadership crisis.
AGM
AGM refers to an annual meeting of shareholders.
The company's AGM will discuss last year's financial performance.
EGM
EGM addresses urgent corporate matters.
The EGM will decide on the sudden takeover bid.
FAQs
What is discussed at an AGM?
AGMs typically cover annual reports, financial statements, elections, and shareholder queries.
Can decisions be made at an AGM?
Yes, decisions like electing directors or approving dividends are made at AGMs.
What is an AGM?
An AGM is an Annual General Meeting held by a company each year for its shareholders.
Who can call an AGM?
An AGM is usually called by a company's board of directors.
What is an EGM?
An EGM is an Extraordinary General Meeting called for urgent matters outside regular meetings.
Who can call an EGM?
EGMs can be called by the board or a significant percentage of shareholders.
Can non-shareholders attend an AGM?
This depends on the company's bylaws; some may allow guests or media.
How often are EGMs held?
EGMs are held as needed, not on a regular schedule.
Can any topic be discussed at an EGM?
EGMs are usually focused on urgent and specific issues.
Is attendance at an AGM mandatory?
While attendance is not mandatory for shareholders, it is encouraged.
What is the notice period for an EGM?
The notice period for an EGM is usually shorter due to its urgent nature.
What happens if I miss an AGM?
Missing an AGM won't affect your shareholder status, but you miss the opportunity to vote and discuss.
Can shareholders propose agenda items for an AGM?
Shareholders can propose items, often subject to owning a certain percentage of shares.
Are EGMs legally required?
EGMs are not legally required unless specific situations arise that need shareholder approval.
Can AGM and EGM be held on the same day?
Technically possible, but usually they are held separately.
Can AGM or EGM decisions be challenged?
Yes, if they violate company bylaws or legal standards, they can be challenged.
Are AGMs open to all shareholders?
Yes, all shareholders are typically invited to AGMs.
Do AGMs and EGMs have minutes recorded?
Yes, minutes are recorded for both to document decisions and discussions.
What if an EGM decision affects an AGM decision?
Decisions at an EGM can override or influence previous AGM decisions.
How is voting done at AGMs and EGMs?
Voting is typically done by a show of hands or by proxy, though methods can vary.
About Author
Written by
Janet WhiteJanet White has been an esteemed writer and blogger for Difference Wiki. Holding a Master's degree in Science and Medical Journalism from the prestigious Boston University, she has consistently demonstrated her expertise and passion for her field. When she's not immersed in her work, Janet relishes her time exercising, delving into a good book, and cherishing moments with friends and family.
Edited by
Aimie CarlsonAimie Carlson, holding a master's degree in English literature, is a fervent English language enthusiast. She lends her writing talents to Difference Wiki, a prominent website that specializes in comparisons, offering readers insightful analyses that both captivate and inform.
