Finance Glossary
EGM (Extraordinary General Meeting)
What is an EGM?
The Extraordinary General Meeting (EGM) of the shareholders of a joint-stock company is a meeting of the shareholders organized to submit specific resolutions requiring qualified majorities to their vote. Specific quorum and majority rules govern the operation of EGMs.
What is the purpose of an Extraordinary General Meeting (EGM)?
The convening of an extraordinary general meeting of shareholders is necessary to amend the company's bylaws, to decide on a capital increase, reduce/amortize the capital, modify the corporate purpose, duration, and name of the company, approve mergers, demergers, and partial asset contributions, decide on the issuance of convertible bonds, exchangeable bonds, investment certificates, and share subscription warrants, resolve the early dissolution of the company, decide on the transformation of the company, amend the bylaws (...).