Form with which the secretary of a corporation notifies all necessary parties of the date, time, and place of a special meeting of the board of directors.
Special Meeting Of Shareholders In Washington
State:
Multi-State
Control #:
US-0014-CR
Format:
Word;
Rich Text
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Description
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FAQ
Hence the meeting of shareholders which is held under special circumstances is the Extraordinary General Meeting.
EGMs are usually held during the gap between two consecutive annual general meetings. If an urgent matter arises between the two annual general meetings, it can be handled by way of holding an extraordinary general meeting.
What are some common reasons to call an EGM? What are some common reasons to call an EGM? Common reasons include addressing urgent financial crises, resolving legal disputes, approving major transactions like mergers or acquisitions, and making significant changes to the company's constitution or board.
The primary purpose of an EGM is to make decisions on matters of significant importance to the company and its shareholders. These matters may include: Amendments to the company's articles of association. Approval of major transactions, such as mergers or acquisitions.
Refers to a meeting of shareholders outside the usual annual general meeting. In the context of corporate governance, some limitations either increase the level of shareholder support required to call a special meeting beyond that specified by state law or eliminate the ability to call one entirely.
If a problem cannot wait until the next annual meeting, however, then a special shareholder meeting may be necessary. This occurs relatively often, for example, when a business seeks shareholder support for a deal.
An Extraordinary General Meeting (EGM) is an urgent meeting called to address pressing company issues or emergencies. These matters require the immediate attention of the board, shareholders and senior company executives. An EGM is also referred to as a special general meeting or an emergency general meeting.
In most cases, EGMs are called for the following reasons: Urgent corporate decisions – Sometimes, time-sensitive corporate decisions like approval of major mergers, acquisitions, or financial restructuring must be made quickly. EGMs allow for these decisions to avoid delays.
The general meeting called within six months of the end of the previous fiscal year is known as the “annual” general meeting (or “AGM”). If a general meeting is held outside that time frame, it is “extraordinary” (“EGM”) and meant to address urgent or pressing matters that couldn't be settled at the AGM.
AGMs are mandatory for both public and private companies. All shareholders are legally obligated to receive an invitation to these meetings. The board of directors should also be represented. An auditor may also be present if the organization is subject to an audit requirement.
