AGM vs EGM: Key Differences Every Shareholder Must Know
AGM is the Annual General Meeting held once every calendar year to approve accounts, appoint directors, and declare dividends. EGM is an Extraordinary General Meeting convened at any time for urgent decisions like mergers or capital increases.
Shareholders receive both invites, yet mix them up because the acronyms sound similar and arrive in the same envelope. In practice, skipping an AGM risks routine fines, while missing an EGM could mean losing your say on a takeover that doubles—or halves—your investment overnight.
Key Differences
AGM follows a fixed 21-day notice, covers mandatory agenda items, and requires audited financials. EGM can be called with 14 days’ notice, deals with unforeseen issues, and may rely on unaudited data.
Which One Should You Choose?
Never choose—attend both. If you can’t, prioritise the EGM when a major transaction is on the table; proxy your vote for the AGM to stay compliant.
Examples and Daily Life
Imagine you hold Tesla shares. The AGM rubber-stamps last year’s results, while an EGM two months later asks you to approve a 3-for-1 stock split. The first is routine; the second moves markets the next morning.
Can a company hold both in the same week?
Yes, if the AGM agenda is complete and a sudden acquisition surfaces, the board can schedule an EGM days later.
Is proxy voting allowed in both?
Absolutely. You can appoint a proxy online or on paper for either meeting under most corporate statutes.