Distinguish between an Annual General Meeting (AGM) and an Extraordinary General Meeting (EGM).

Question

Accepted Answer

The Annual General Meeting and the Extraordinary General Meeting are both 'general meetings' of a company's members, and both must satisfy the same core essentials of a valid meeting (notice, quorum, chairman, agenda, minutes), but they differ sharply in several respects:

| Basis of distinction | Annual General Meeting (AGM) | Extraordinary General Meeting (EGM) |
|---|---|---|
| Governing section | Section 96, Companies Act, 2013 | Section 100, Companies Act, 2013 |
| Frequency | Compulsory, once every calendar year | Occasional — held only as and when required |
| Who can call it | Ordinarily only the Board of Directors | The Board (on its own motion or on members' requisition), or the requisitionists themselves if the Board defaults |
| Time limit | First AGM within 9 months, subsequent AGMs within 6 months of financial year-end; gap between two AGMs not more than 15 months | No fixed calendar deadline — called whenever urgent business arises; if requisitioned, must be held within 3 months of the requisition |
| Nature of business | A mix of ordinary business (accounts, dividend, director appointment, auditor appointment) and any special business added | Entirely special business — there is no 'ordinary business' reserved for an EGM |
| Consequence of default | Tribunal may order a meeting to be called; penalty under Section 99 | No equivalent annual default penalty, since there is no fixed obligation to hold one unless requisitioned | …

Q.Distinguish between an Annual General Meeting (AGM) and an Extraordinary General Meeting (EGM).

Concept understanding — Extraordinary General Meeting (EGM)

Basis of distinction	Annual General Meeting (AGM)	Extraordinary General Meeting (EGM)
Governing section	Section 96, Companies Act, 2013	Section 100, Companies Act, 2013
Frequency	Compulsory, once every calendar year	Occasional — held only as and when required
Who can call it	Ordinarily only the Board of Directors	The Board (on its own motion or on members' requisition), or the requisitionists themselves if the Board defaults
Time limit	First AGM within 9 months, subsequent AGMs within 6 months of financial year-end; gap between two AGMs not more than 15 months	No fixed calendar deadline — called whenever urgent business arises; if requisitioned, must be held within 3 months of the requisition
Nature of business	A mix of ordinary business (accounts, dividend, director appointment, auditor appointment) and any special business added	Entirely special business — there is no 'ordinary business' reserved for an EGM
Consequence of default	Tribunal may order a meeting to be called; penalty under Section 99	No equivalent annual default penalty, since there is no fixed obligation to hold one unless requisitioned

Q.Distinguish between an Annual General Meeting (AGM) and an Extraordinary General Meeting (EGM).

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