Extraordinary general meeting
An
extraordinary general meeting, commonly abbreviated as
EGM, is a meeting of members of an organisation, shareholders of a company, or employees of an official body, which occurs at an irregular time.
The term is usually used where the group would ordinarily hold an annual general meeting, but where an issue arises which requires the input of the entire membership and is too serious or urgent to wait until the next AGM. Members and/or shareholders must be informed of the purpose of the EGM so that they may attend in a position where they can discuss and exercise intelligent judgment, otherwise any resolutions passed are invalid.
Procedure: Before the EGM the board of the organisation will have agreed upon one or more resolutions that will be put to the shareholders or members for approval at the EGM. The wording of the resolution is sent to the shareholders with a note about its importance. The theory is that the board has a better knowledge of the situation, and the resolution is in effect their ideal solution, but it may not be in the interests of individual shareholders.