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Difference between AGM and EGM meeting

by Pawan


Posted on November 2, 2020


AGM and EGM meeting

What is AGM Full Form?

AGM Full Form is Annual General Meeting.

What is AGM?

  • Annual General Meeting is a meeting of stockholders or shareholders, members of company once in year and is called as per Section 96 of Companies Act, 2013
  • Annual General Meeting is mandatory to be held in every financial year.
  • In Annual General Meeting functions like review of accounts, approving audited accounts, Voting for approving accounts are carried on. 
  • Annual General Meeting is called by Board of directors for shareholders.

Notice of Annual General Meeting

Annual general meeting, the notice should be given by the authorised person to every shareholder, director of the company.

  • The notice is must be in writing.
  • Oral intimation is allowed as a notice.
  • The day, date, time and complete address of the meeting shall be specified in the notice.
  • Subject of the meeting must be specified in the notice.
  • The notice must be given by company at least 21 days ago.

Quorum

For a valid general meeting, a proper quorum must be present. A quorum for a valid general meeting, it is necessary to personally present in the meeting.

CompanyNumber of members as on the date of the meetingQuorum

Public company
Up to 1000 members5 members
1001-5000 members15 members
5001 or more members30 members
Private company2 members

Due date of Annual General Meeting

9 monthsFirst AGM Within of 9 months from the date of closing of the first financial year
6 monthsAfter first AGM Within a 6 months from the closing of the financial year
15 monthsAfter first AGM maximum gap of 15 months can be allowed between two AGMs

Penalty of not holding AGM

If company is not holding AGM Company liable to pay Fine which may extend to Rs.1,00,000 and in the case of a continuing default, with a further fine which may extend to Rs.5,000 for every day during which such default continues.

AGM and EGM

What is EGM Full Form?

EGM Full Form is Extra Ordinary General Meeting.

What is EGM?

Any meeting of Shareholders/Members of company other than the Annual General meeting it is called Extraordinary General Meeting.

EGM mostly use for urgent matters.

When company cannot delay some matter which require shareholder’s approval but cannot wait until the next Annual General Meeting, then company calls Extra Ordinary General Meeting.

Quorum

For a valid general meeting, a proper quorum must be present. A quorum for a valid general meeting, it is necessary to personally present in the meeting.

CompanyNumber of members as on the date of the meetingQuorum

Public company
Up to 1000 members5 members
1001-5000 members15 members
5001 or more members30 members
Private company2 members

EGM called By Whom?

Board Members, Directors of the Company, Requisition by Members, Tribunal call the Extra Ordinary General Meeting.

Notice of Extra Ordinary General Meeting

The notice must be given by company at least 21 days ago.

Agenda of meeting given in the notice.

The day, date, time and complete address of the meeting shall be specified in the notice.

Some of the purposes of calling EGM

  • Change in Articles of Association
  • Change in Memorandum of Association
  • Increase or decrease of Capital
  • Issue of debentures
  • Removal of Director/Auditor

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