Any shareholder or group of shareholders holding at least 10 percent of the shares in a Company can request the Board to convene an EGM by sending a signed notice to the Company at its Registered Office. Such a requisition notice shall include the matters that are to be considered at the EGM.
The board of directors has the power to call general meetings and the majority of general meetings will be called by the directors (S302 of the Companies Act 2006). The members also have the ability to demand a general meeting.
In most situations, a company requires a demand from enough investors to hold an annual meeting. “Enough” varies considerably. A few companies allow a single shareholder to do this, or investors representing 1% of the shares, while a few require as many as 80% of the shares to demand a special meeting.
Who can call an annual general meeting?
If the Board fails to convene its Annual General Meeting in any year, any Member of the company may approach the prescribed authority, which may then direct the calling of the Annual General Meeting of the company. Section 96 of the Act requires that the Annual General Meeting should be held in each year.
302 of the Act. (ii) Where the Board are obliged to call a General Meeting as a result of a requisition from shareholders. Shareholders representing at least 5% of the paid up share capital can require the company to call a General Meeting by following the procedure set out in s. 303 of the Act.
249D Meeting and 249F Meeting
A similar power exists for shareholders to call and hold a meeting. Section 249F of the Corporations Act provides that members with at least 5% of the votes that may be cast at a general meeting may call, and arrange to hold a general meeting.
The members (including shareholders) of the company are entitled to attend and vote at the AGM. Members can cast their votes by a physical ballot or postal ballot or through e-voting. Members can appoint proxies to attend an AGM and vote on their behalf.
The difference is this: Shareholders’ meeting – the word Shareholders’ is a possessor. The phrase could be rewritten as meeting of Shareholders. Shareholders meeting – the word Shareholders is an attributive noun: a noun that describes a main noun.
Can non members attend AGM?
Who can attend? Any member can attend your AGM. That sounds simple, but there are almost always difficulties, due largely to poor drafting of constitutional provisions to do with membership terms.
What is the difference between a general meeting and an annual general meeting?
The key difference is that an AGM is a scheduled meeting which must be held annually. On the other hand, an EGM is an ad-hoc meeting convened in response to an urgent matter.
Is an AGM a legal requirement?
As the term suggests, an Annual General Meeting (AGM) is a mandatory once-a-year shareholders’ meeting of a company to pass decisions that require shareholder approval by law or a shareholders’ meeting that is desired by the shareholders, the company or its board.
Can any director call a Board meeting?
The directors can call a meeting of the Board at any time, to transact any business within their powers. The directors’ meeting is called by the Chairman of the Board or on the requisition of the director(s).