Annual General Meeting (AGM): This meeting is hold annually i.e. once in a year. It is mandatory to hold this meeting annually and gap between two AGM's should not be more than 15 months in two years. The main purpose to hold an AGM is bringing all the members together to discuss various business related issues and other issues related to the better functioning of the company, strategies and performance of the company. In this meeting they take resolutions and take steps to protect their interest. Main points of discussion in AGM are Ordinary or routine business and special business. Usually first AGM is hold within the 18 months of the incorporation of the company and then AGM should be held each year within six months of the end of the financial year. AGM is called by the Board of Directors by giving 21 days notice to all members/ company's shareholders for the meeting. All the certified copies of balance sheets, audit reports and other reports are also forwarded to all the members before meeting. In this meeting shareholders also vote on current issues like election of Board of directors, selection of auditors, execution compensation, declaration of dividends, adoption of annual accounts, annual report, director's report and auditor's reports etc. Some special matters are also taken in the AGM like alteration of Articles of Association (AoA)and increase in authorized capital etc.
Extra Ordinary General Meeting (EGM): It is also called a special general meeting or emergency general meeting. This meeting is hold other than the Annual General Meeting (AGM). It is called on a short notice to discuss an urgent matter arise between the annual shareholder meeting which usually occurs at a fixed date and time. In this meeting executive members of an organization, shareholders of a company, or employees of an official body comes together. The main reason of organizing an EGM is to discuss some urgent issue or any crisis situation about the company that may arises suddenly and requires the input of all senior board members. It is used to call to resolve or look into an emergency issue and take important measures such as resolving an immediate legal matter or sometime elimination of a key manager, or any matter that can't wait of annual shareholder meeting.
There are some key difference between AGM and EGM:
1. AGM is held annually at a fixed time and date. While EGM is called only during an emergency to discuss on urgent matters.
2. AGM is held only during Business hours on the other hand EGM can be carried out on any day including holiday.
3. AGM can be called by company's board only while EGM can also be called by the board on the call of shareholders, requisitionist, or tribunal.