{"id":40153,"date":"2022-02-15T11:17:38","date_gmt":"2022-02-15T05:47:38","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=40153"},"modified":"2022-02-15T11:19:18","modified_gmt":"2022-02-15T05:49:18","slug":"extraordinary-general-meeting-provisions-under-companies-act-2013","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/extraordinary-general-meeting-provisions-under-companies-act-2013\/","title":{"rendered":"Extraordinary General Meeting: Provisions under Companies Act, 2013"},"content":{"rendered":"\n<p class=\"has-drop-cap\">An extraordinary general meeting (aka EGM) refers to a shareholder meeting called other than a company&#8217;s scheduled AGM, i.e., <a href=\"https:\/\/corpbiz.io\/learning\/annual-general-meeting\/\"><strong>Annual General Meeting<\/strong><\/a>. An EGM is also known as an emergency general meeting or special general meeting. EGMs are generally called when a company encounters critical matters that seek prompt resolution.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/extraordinary-general-meeting-provisions-under-companies-act-2013\/#Significance_of_Extraordinary_General_Meeting_for_Incorporated_Companies\" >Significance of Extraordinary General Meeting for Incorporated Companies<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/extraordinary-general-meeting-provisions-under-companies-act-2013\/#Provisions_for_Extraordinary_General_Meeting_under_Companies_Act_2013\" >Provisions for Extraordinary General Meeting under Companies Act, 2013<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/extraordinary-general-meeting-provisions-under-companies-act-2013\/#Is_there_is_any_set_timeframe_in_which_EGM_should_be_conducted\" >Is there is any set timeframe in which EGM should be conducted?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/extraordinary-general-meeting-provisions-under-companies-act-2013\/#What_matters_are_addressed_in_the_Extraordinary_General_Meeting_EGM\" >What matters are addressed in the Extraordinary General Meeting (EGM)?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/corpbiz.io\/learning\/extraordinary-general-meeting-provisions-under-companies-act-2013\/#What_are_the_norms_for_prior_notification_to_members_for_convening_EGM\" >What are the norms for prior notification to members for convening EGM?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/corpbiz.io\/learning\/extraordinary-general-meeting-provisions-under-companies-act-2013\/#Who_has_the_authority_to_call_an_Extraordinary_General_meeting\" >Who has the authority to call an Extraordinary General meeting?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/corpbiz.io\/learning\/extraordinary-general-meeting-provisions-under-companies-act-2013\/#What_about_the_reimbursement_of_expenses_incurred_by_the_concerned_members_in_calling_an_EGM\" >What about the reimbursement of expenses incurred by the concerned members\nin calling an EGM?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/corpbiz.io\/learning\/extraordinary-general-meeting-provisions-under-companies-act-2013\/#What_are_the_formreturn_filing_provisions_for_holding_EGM_in_a_company\" >What are the form\/return filing provisions for holding EGM in a company?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/corpbiz.io\/learning\/extraordinary-general-meeting-provisions-under-companies-act-2013\/#What_type_of_penalties_shall_come_to_effect_in_case_of_non-compliance_relating_to_EGMs_provisions\" >What type of penalties shall come to effect in case of non-compliance\nrelating to EGM&#8217;s provisions?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/corpbiz.io\/learning\/extraordinary-general-meeting-provisions-under-companies-act-2013\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Significance_of_Extraordinary_General_Meeting_for_Incorporated_Companies\"><\/span>Significance of Extraordinary General Meeting for Incorporated Companies<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>In most scenarios, shareholders meet only\nduring an AGM of a company, which generally takes place at a predetermined date\nand time. But, certain events might seek shareholders to come together on\nurgent notice to resolve critical matters seeking immediate attention.<\/p>\n\n\n\n<p>The EGM is utilized to handle the urgent\nmatters that come up between the annual meetings of shareholders.<\/p>\n\n\n\n<p>An EGM usually takes place to address the\nfollowing concerns related to:<\/p>\n\n\n\n<ul><li>The\nremoval of an executive<\/li><li>A\nlegal matter<\/li><li>Any\nmatter that can&#8217;t wait until the next shareholders meeting<\/li><\/ul>\n\n\n\n<p>Another fundamental difference between an\nAGM &amp; an EGM is that an AGM can only be conducted during business hours and\nworking days only. Meanwhile, an EGM doesn&#8217;t have to adhere to such conditions.<\/p>\n\n\n\n<p>Besides, unlike AGM, an extraordinary\ngeneral meeting can only be called by the Board on the demand of shareholders\nor tribunal.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Provisions_for_Extraordinary_General_Meeting_under_Companies_Act_2013\"><\/span>Provisions for Extraordinary General Meeting under Companies Act, 2013<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Regulation 42 of table F states that all\nboard meetings other than AGM shall be regarded as EGM. All business that is\ntransacted at EGM shall be considered special.<\/p>\n\n\n\n<p>Section 100 under Companies Act, 2013,\nread with rule 17 of The Companies (Management &amp; Administration) Rules,\n2014, sets out the provisions relating to the convening of EGM.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Is_there_is_any_set_timeframe_in_which_EGM_should_be_conducted\"><\/span>Is there is any set timeframe in which EGM should be conducted?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>There is no standard time for convening an\nEGM, unlike AGM. But, some critical matters seek the immediate attention of the\nconcerned shareholders. This is when the Extraordinary General meeting comes\ninto play. It allows the company to transact business where the shareholders&#8217;\nconcerns are required under the Companies Act, 2013.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_matters_are_addressed_in_the_Extraordinary_General_Meeting_EGM\"><\/span>What matters are addressed in the Extraordinary General Meeting (EGM)?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>As per the Companies Act, 2013, EGM can\nbe called for resolving any subject matter, including legal disputes or\ninternal management issues. However, in general, EGM is convened for addressing\nthe following subject matters:<\/p>\n\n\n\n<ul><li>The\nremoval of a company&#8217;s top officials, including executive and directors<\/li><li>Removal\nof Auditor<\/li><li>A\nlegal dispute<\/li><\/ul>\n\n\n\n<p>Any matter seeking prompts the attention\nof the concerned shareholders and cannot be delayed any further or to the point\nof the next AGM.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_are_the_norms_for_prior_notification_to_members_for_convening_EGM\"><\/span>What are the norms for prior notification to members for convening EGM?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The notification for EGM must be shared\nwith the concerned shareholders before 21 days of such a meeting. However, companies\nhave the right to convene EGM on an urgent basis. This is contrary to the\nconditions concerning Annual General Meeting.<\/p>\n\n\n\n<p>The notification must reflect the subject matters seeking the participation of the concerned shareholders. As per the <strong>Companies Act, 2013<\/strong><sup><a href=\"https:\/\/www.mca.gov.in\/content\/mca\/global\/en\/acts-rules\/ebooks.html\"><strong>[1]<\/strong><\/a><\/sup>, any matter transacted in such a meeting is deemed a special business.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Who_has_the_authority_to_call_an_Extraordinary_General_meeting\"><\/span>Who has the authority to call an Extraordinary General meeting?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>An Extraordinary General Meeting<\/p>\n\n\n\n<p>An Extraordinary General Meeting (EGM)\ncan be called by:- 1. Company or<\/p>\n\n\n\n<p>2. requisition made by,\u2014<\/p>\n\n\n\n<ul><li>Members\nhave at least 1\/10th of the company&#8217;s paid-up share capital.<\/li><li>Members\nhave at least 1\/10th of the total voting power in case of non-availability of\nshare capital with the company. <\/li><\/ul>\n\n\n\n<p>The criteria for holding EGM by concerned\nmembers should be identical to that of the Board&#8217;s execution.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_about_the_reimbursement_of_expenses_incurred_by_the_concerned_members_in_calling_an_EGM\"><\/span>What about the reimbursement of expenses incurred by the concerned members\nin calling an EGM?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Any reasonable expenses incurred by the\nconcerned members in calling an EGM under sub-section (4) shall be reimbursed\nto such members by the company and the amount so paid shall be subtracted from\nany fee or other remuneration as per Companies Act, 2013 payable to such of the\ndirector allegedly failed in calling the meeting.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_are_the_formreturn_filing_provisions_for_holding_EGM_in_a_company\"><\/span>What are the form\/return filing provisions for holding EGM in a company?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>As such, there are no requirements under\nthe prevailing Act that mandate filing form or return to conduct EGM in the\ncompany. However, filing of E-form MGT-14 is mandatory if the company has\npassed special resolutions in any general meeting.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_type_of_penalties_shall_come_to_effect_in_case_of_non-compliance_relating_to_EGMs_provisions\"><\/span>What type of penalties shall come to effect in case of non-compliance\nrelating to EGM&#8217;s provisions?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>In such a case, Defaulters are required\nto pay a fine amounting to Rs 10000 within the prescribed timeline. Further, in\ncase of a continuing violation, per day fine of Rs 1000 shall come to effect.\nThe maximum fine in this context has been capped at Rs 2, 00,000 and Rs 50,000\nfor company and person in default, respectively.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p> Extraordinary General Meeting gives leverage to incorporated companies to deal with or resolve critical issues in a time-bound manner. Unlike AGM, the companies have the privilege to conduct EGM on an urgent basis. This especially comes in handy in the event of a legal dispute or any crisis that seeks the immediate attention of the stakeholders. <\/p>\n\n\n\n<p class=\"text-left\"><b>Read our Article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/is-it-mandatory-to-file-adt-1-for-auditors-appointment\/\">Is it Mandatory to File ADT 1 for Auditor\u2019s Appointment?\n<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>An extraordinary general meeting (aka EGM) refers to a shareholder meeting called other than a company&#8217;s scheduled AGM, i.e., Annual General Meeting. An EGM is also known as an emergency general meeting or special general meeting. EGMs are generally called when a company encounters critical matters that seek prompt resolution. Significance of Extraordinary General Meeting [&hellip;]<\/p>\n","protected":false},"author":22,"featured_media":40157,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[120],"tags":[2123],"acf":{"service_id":"321"},"authorName":"Pankaj Tyagi","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2022\/01\/MicrosoftTeams-image-42.jpg","authorDescription":"Pankaj has a diverse experience of writing research papers, blog, and articles during his college time. Earlier, he was working as a tax consultant in a financial firm, but his interest in writing drives him to pursue a career in the writing field.","postViews":24159,"readingTime":4,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/40153"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/22"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=40153"}],"version-history":[{"count":8,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/40153\/revisions"}],"predecessor-version":[{"id":40162,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/40153\/revisions\/40162"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/40157"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=40153"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=40153"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=40153"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}