EGM stands for Extraordinary General Meeting. It is a term commonly used in the corporate and organizational context. An EGM, also known as a Special General Meeting (SGM), is a gathering of the members, shareholders, or stakeholders of an entity that takes place outside the regular schedule of meetings.
An EGM is called in response to matters of paramount importance that cannot be addressed through the normal channels of governance. These matters may include significant changes to the company's articles of association, major corporate decisions, alterations to the management structure, mergers, acquisitions, or dissolution of the organization.
During an EGM, participants discuss and vote on the specific agenda items. The decisions made at the EGM hold the same weight as those made at a regular General Meeting. The meeting may be called by the company's board of directors, management team, significant shareholders, or regulatory authorities, depending on the circumstances.
EGMs are governed by legal requirements and guidelines, including notice periods, quorum regulations, and voting procedures, which vary depending on the jurisdiction and the nature of the organization. The minutes of an EGM are usually recorded and kept as an official record.
Overall, an EGM serves as a mechanism for addressing exceptional business matters that fall outside the purview of ordinary meetings, ensuring transparency and democratic decision-making within the organization.
