Extraordinary General Meeting
Any general meeting of shareholders other than the annual general meeting, called to decide urgent business.
How it is identified
Test: the meeting is convened by the board, or on requisition by members holding at least one-tenth of the paid-up capital carrying voting rights
Unit
qualitative
In depth
An EGM is called when a decision cannot wait for the annual meeting — approving a merger scheme, a large preferential allotment, a change in the object clause, or the removal of a director. The requisition right is the mechanism by which shareholders can force a meeting the board does not want, and it requires holders of at least a tenth of the voting capital to act together. Institutional shareholders occasionally use it, and the attempt itself is a public signal of a governance dispute. The notice must state the business and include an explanatory statement, and no other business can be transacted.
Worked example
Shareholders holding 11% of a company's voting capital requisition an EGM to remove a director. The board must convene it within twenty-one days, or the requisitionists may call it themselves.
Illustrative figures, chosen so the arithmetic is easy to follow. Not a live price and not a valuation of any company.
Educational reference only
This entry explains what “Extraordinary General Meeting” means. It is not investment advice and not a recommendation to buy or sell any security. Any numbers above are illustrative, not live prices, and nothing here predicts price direction or rates a stock. Consider your own circumstances and consult a SEBI-registered investment adviser before acting.