Annual General Meeting (AGM)

An Annual General Meeting (AGM) is a mandatory meeting conducted by a company every year, as required by company law. It is a formal gathering of shareholders, directors, and other key stakeholders of the company. The purpose of an AGM is to provide transparency and accountability to the shareholders and to discuss important matters related to the company's operations, performance, and future plans.

Key features of an Annual General Meeting:

- Frequency: An AGM is held once every year, within a specified time frame after the end of the financial year, as mandated by company law.
- Compulsory Attendance: All shareholders of the company are entitled to attend the AGM and exercise their voting rights.
- Agenda: The agenda of an AGM typically includes the presentation of financial statements, appointment of auditors, election of directors, declaration of dividends, and any other matters that require shareholder approval.
- Notice: The company must provide a notice to all shareholders, informing them about the date, time, and venue of the AGM, along with the agenda and necessary documents.
- Voting: Shareholders have the right to vote on various matters discussed during the AGM. Each share usually carries one vote, although some companies may have different voting rights for different classes of shares.

Extraordinary General Meeting (EGM)

An Extraordinary General Meeting (EGM) is a special meeting called by a company outside of the regular AGM to discuss and decide on urgent or exceptional matters that cannot wait until the next AGM. Unlike an AGM, which is held annually, an EGM can be convened at any time during the year when the need arises.

Key features of an Extraordinary General Meeting:

- Purpose: An EGM is called to address specific issues that require immediate attention, such as changes to the company's constitution, approval of major transactions, alteration of share capital, removal of directors, or any other matters of significant importance.
- Notice: The company must provide a notice to all shareholders, specifying the date, time, and venue of the EGM, along with the agenda and relevant documents. The notice period for an EGM is usually shorter than that of an AGM.
- Limited Agenda: The agenda of an EGM is focused on the specific matters for which the meeting was convened. Other routine matters, such as the approval of financial statements, are not typically included in an EGM agenda.
- Voting: Shareholders have the right to vote on the matters discussed during the EGM, and the decisions made are binding.

Conclusion

In summary, the main difference between an Annual General Meeting (AGM) and an Extraordinary General Meeting (EGM) lies in their frequency and purpose. AGMs are held once every year and cover a wide range of routine matters, including the presentation of financial statements and appointment of auditors. On the other hand, EGMs are called as and when necessary to address specific urgent matters that cannot wait until the next AGM. Both meetings provide shareholders with the opportunity to participate in decision-making and exercise their voting rights.