In corporate management, Annual General Meetings (AGMs) and Extraordinary General Meetings (EGMs) serve as essential principles for administrative transparency. While both are official convergences of a corporation’s shareholders, they disagree in purpose, repetitiveness, and allowable necessities.

Understanding the differences between an AGM and an EGM is crucial for firm directors, secretaries, and shareholders to guarantee decent agreement accompanying managing like Singapore’s Companies Act. Read the article below for more information about the difference.

What Is an Annual General Meeting (AGM)?

An AGM is a regular meeting where a company presents its financial declarations, updates shareholders on conduct, and addresses important decisions like director assignments and dividend declarations. Read the points below to learn more about the Annual General Meeting (AGM).

Key Features of an AGM:

1. Held each year (except for exempted companies)
2. Mandatory for most public companies and a few private limited companies
3. Financial statements and reports are given
4. Shareholders vote on key matters like director re-voting or auditor assignments

Typical AGM Agenda:

1. Presentation of the audited financial affidavits
2. Appointment or re-appointment of managers and auditors
3. Declaration of dividends
4. Approval of manager and executive remuneration

Extraordinary General Meeting

An EGM is an investor conference held outside of the AGM schedule to address necessary or business matters that cannot wait just before just before the next AGM.

Key Features of an EGM:

1. Held as and when needed
2. Called to examine special or demanding matters
3. Can be met by directors or shareholders (meeting positive shareholding thresholds)
4. Often has a connection with major conclusions like mergers, amendments to the establishment, or removal of managers

Main Reasons for AGM:

1. Corporate rearrangement approval
2. Changing the enterprise name or constitution
3. Removing or appointing managers outside of AGM eras
4. Issuing new shares or altering share capital

Legal Requirements in Singapore

1. AGMs:

Public companies must hold an AGM within 6 months after the financial year-end.

Private companies can be exempt if they:

• Send commercial statements to shareholders within 5 months after FYE
• Do not need to hold an AGM if members agree and the establishment allows it

2. EGMs:

• Must obey notice periods (generally 14 days for common resolutions and 21 days for distinguished resolutions).
• Outcomes must be recorded and, if necessary, filed with ACRA.

When Should You Hold an AGM or EGM?

1. Hold an AGM When:

• You are constitutionally required to be by ACRA or your company establishment
• It is time to present commercial results and appoint managers/auditors
• You need to declare profits

2. Hold an EGM When:

• A decision cannot wait as far as the next AGM
• The matter is urgent, like a board reorganization or merger authorization
• Shareholders demand it (under statutory rights)

Conclusion

Both AGMs and EGMs play critical roles in the government and accountability of an association. While AGMs are structured and persistent, EGMs offer the flexibility to address surprising or significant matters immediately. You can also contact a secretary firm in Singapore for more help.