Egm

This query is : Resolved

Report Abuse Follow Query Ask a Query

Querist : Anonymous

Querist : Anonymous (Querist)

03 September 2011
Extra ordinary General Meeting

on what occasions "EOGM" is held
please reply

CMA Ashutosh Kumar Gupta

CMA Ashutosh Kumar Gupta (Expert)
Follow

03 September 2011 As the name suggests itself EOGM means a General Meeting (any member can call such a meeting subject to laid down provisions under the Companies Act) which is not ordinary general meeting in a sense prevailing under the Companies law, under Section 169 of the Companies Act, a reference has been cited to the term EXTRAORDINARY GENERAL MEETING, the section is reproduced below to convey a better understanding:
169. CALLING OF EXTRAORDINARY GENERAL MEETING ON REQUISITION
(1) The Board of directors of a company shall, on the requisition of such number of members of the company as is
specified in sub-section (4), forthwith proceed duly to call an extraordinary general meeting of the company.
(2) The requisition shall set out the matters for the consideration of which the meeting is to be called, shall be signed
by the requisitionists, and shall be deposited at the registered office of the company.
(3) The requisition may consist of several documents in like form, each signed by one or more requisitionists.
(4) The number of members entitled to requisition a meeting in regard to any matter shall be -
(a) in the case of a company having a share capital, such number of them as hold at the date of the deposit of the
requisition, not less than one-tenth of such of the paid-up capital of the company as at that date carries the right of
voting in regard to that matter ;
(b) in the case of a company not having a share capital, such number of them as have at the date of deposit of the
requisition not less than one-tenth of the total voting power of all the members having at the said date a right to vote in
regard to that matter.
(5) Where two or more distinct matters are specified in the requisition, the provisions of sub-section (4) shall apply
separately in regard to each such matter ; and the requisition shall accordingly be valid only in respect of those
matters in regard to which the condition specified in that sub-section is fulfilled.
(6) If the Board does not, within twenty-one days from the date of the deposit of a valid requisition in regard to any
matters, proceed duly to call a meeting for the consideration of those matters on a day not later than forty-five days
from the date of the deposit of the requisition, the meeting may be called -
(a) by the requisitionists themselves ;
(b) in the case of a company having a share capital, by such of the requisitionists as represent either a majority in
value of the paid-up share capital held by all of them or not less than one-tenth of such of the paid-up share capital of
the company as is referred to in clause (a) of sub-section (4), whichever is less ; or
(c) in the case of a company not having a share capital, by such of the requisitionists as represent not less than onetenth
of the total voting power of all the members of the company referred to in clause (b) of sub-section (4).
Explanation. - For the purposes of this sub-section, the Board shall, in the case of a meeting at which a resolution is to
be proposed as a special resolution, be deemed not to have duly convened the meeting if they do not give such notice
thereof as is required by sub-section (2) of section 189.
(7) A meeting called under sub-section (6) by the requisitionists or any of them -
(a) shall be called in the same manner, as nearly as possible, as that in which meetings are to be called by the Board ;
but
(b) shall not be held after the expiration of three months from the date of the deposit of the requisition.
Explanation. - Nothing in clause (b) shall be deemed to prevent a meeting duly commenced before the expiry of the
period of three months aforesaid, from adjourning to some day after the expiry of that period.
(8) Where two or more persons hold any shares or interest in a company jointly, a requisition, or a notice calling a
meeting, signed by one or some only of them shall, for the purposes of this section, have the same force and effect as
if it had been signed by all of them.
(9) Any reasonable expenses incurred by the requisitionists by reason of the failure of the Board duly to call a meeting
shall be repaid to the requisitionists by the company ; and any sum so repaid shall be retained by the company out of
any sums due or to become due from the company by way of fees or other remuneration for their services to such of
the directors as were in default.
Futher, SECTIONS 171 TO 186 TO APPLY TO MEETINGS.

Hari Beldona

Hari Beldona (Expert)
Follow

03 September 2011 Extra ordinary General Meeting is held on the following occasions
1.Board of Directors can call for some urgent business which can not wait till the next Annual General Meeting.
2. Members of a company have right to require directors to call an EGM:
a)Members of the company holding at the date of making demand not less than 1/10th of such voting rights in regards to the matter to be discussed-where the company has share capital
b)Where there is no share capital not less than 1/10th of members having voting rights at the date regards to the matter
3.If for any reason it is impracticable to call a meeting other than AGM, the Company Law Board may call either on its i) own motion or ii) on the application of any director of the company or any member of the company entitled to vote at the meeting as the Board thinks fit...

Upgrade to CAclubindia Pro. Subscribe Now!