Difference Between AGM and EGM: Members of a company or the directors of a company can exercise their powers and can bind the company only when they act as a body at a validly convened and held meeting. An individual member or shareholder, irrespective of his shareholding cannot bind a company by his individual act.The decision making powers of a company are vested in the Members and the Directors and they exercise their respective powers through Resolutions passed by them. General Meetings of the Members provide a platform to express their will in regard to the management of the affairs of the company.
Difference Between AGM and EGM
Annual General Meeting (AGM)Annual general meeting (AGM) is an important annual event where members get an opportunity to discuss the activities of the company. Section 96 provides that every company, other than a one person company is required to hold an annual general meeting every year. SS-2 provides that the Board shall, every year, convene or authorize convening of a meeting of its members called the Annual General Meeting to transact items of ordinary business specifically required to be transacted at an annual general meeting as well as special business, if any. If the Board fails to convene its Annual General Meeting in any year, any Member of the company may approach the prescribed authority, which may then direct the calling of the Annual General Meeting of the company.
Extra Ordinary General Meeting (EGM)There are so many matters relating to the business of a company, which requires approval or consent of members in general meeting. It is always not possible for consideration of such matters to wait until the next annual general meeting. The articles of association of the company of the company make provisions for convening general meeting other than the annual general meeting. All general meetings other than annual general meeting are called extraordinary general meetings.
Difference Between AGM and EGM
|First AGM should be held within 9 months of incorporation||No such stipulation|
|AGM has to be held at least once in a year||No such stipulation|
|Ordinary business can be conduction in AGM only||Ordinary business cannot be conducted in EGM. Only special business can be conducted in EGM|
|Can be held on any day except National Holiday||Can be held on any day including National Holiday|
|Can be held during business hours only||Can be held at any time during the day|
|If AGM is not held, company and officer be liable to penalty of upto Rs. 1,00,000 and Rs. 5,000 per day||No such penalty prescribed under the law|
|AGM cannot be held on requisition by members||EGM can be held on requisition by members|
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