Annual General Meeting & Extraordinary

General Meeting: A Comparative Study

Annual General Meeting & Extraordinary
General Meeting: A Comparative Study
Meeting Defined :
A meeting may be generally defined as a gathering or assembly or getting
together of a number of persons for transacting any lawful business. There
must be at least two persons to constitute a meeting. Therefore, one
shareholder usually cannot constitute a company meeting even if he holds
proxies for other shareholders. However, in certain exceptional
circumstances, even one person may constitute a meeting.
Types of Meeting :

ANNUAL GENERAL EXTRAORDINARY

MEETING GENERAL MEETING
Annual General Meeting :
The annual general meeting (AGM) is an important annual event where
members get an opportunity to discuss the activities of the company.
Section 96 provides that every company, other than a one-person company
is required to hold an annual general meeting every year. SS-2 provides that
the Board shall, every year, convene or authorize convening of a meeting of
its members called the Annual General Meeting.

• Holding of annual general meeting

• Extension of validity period of AGM
• Date, Time and place for holding an annual general meeting
• Penalty for default in holding the annual general meeting [Section 99]
• Business to be transacted at annual general meeting
Extraordinary General Meeting :
All general meetings other than annual general meeting are called extraordinary
general meetings.

• By the Board Suo motu [Section 100 (1)]

• By Board on requisition of members [Section 100 (2)]

(a) in the case of a company having a share capital
(b) in the case of a company not having a share capital

• By requisitionists [Section 100(4)]

(a) Procedure for Calling Shareholder Meetings in Absence of Board
Action
(b) Requirements for Meeting Notices and Location
(c) Notice Requirements for Special Resolutions
(d) Notice to be signed
(e) No explanatory statement annexed to the notice
(f) Serving of notice of the meeting
(g) Mode of giving notice
Difference b/w AGM & EGM :
The Companies Act of 2013 and the Companies Management and
Administration Rules, of 2014 show that both AGMs and EGMs
have similar procedural and substantive requirements.

However, they are different in the following ways:

1. AGM must be held once in each calendar year to discuss the activities of the company
while EGM are for urgent issues.

2. AGMs must be held within 9 months after the date of the financial year but EGMs
have no such requirement.

3. AGMs handle regular and special business while EGMs only handle special business.

4. AGMs are typically held on non-holiday weekdays where whereas EGMs can occur
even on national holidays.
Conclusion
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