KNOWLEDGE|
(1) |
Annual General Meeting (AGM)
An AGM is compulsory for public companies and must take place each year. Private companies are usually not required to hold one unless their constitution explicitly mandates it. This exemption reflects the more straightforward governance structure commonly seen in single-owner private companies. The AGM fulfils several key purposes, including:
(b) Appointing or re-appointing directors and auditors (c) Declaring dividends (where applicable)
According to Section 340 of CA 2016, AGMs must occur within 6 months after the end of the financial year but should not be held more than 15 months after the previous AGM.
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(2) |
Extraordinary General Meeting (EGM)
An EGM is convened to address urgent or exceptional matters that cannot wait until the next Annual General Meeting (AGM). This includes:
(b) Amending the company’s constitution (c) Changes in share capital or board composition
The board of directors can initiate EGMs, or, in specific situations, by shareholders who own a minimum of 10% of the issued share capital pursuant to Section 310(b) of the CA 2016.
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(3) |
Class Meeting of Shareholders
Class meetings involve shareholders of a particular class, such as ordinary or preference shareholders and focus on issues directly affecting their specific rights and interests. Attendance and voting at these meetings are restricted to shareholders of that class.
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(1) |
Notice of Meeting
Notices must be issued at least 14 days for meetings involving ordinary resolutions and 21 days for those involving special resolutions. Each notice must include the date, time, venue (or virtual access details), agenda, and explanatory notes for each special resolution.
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(2) |
Quorum Requirements
Quorum is the minimum attendance needed to hold a meeting properly. The CA 2016 usually requires at least 2 members to constitute a quorum, unless the company’s constitution specifies otherwise.
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(3) |
Resolutions and Voting Resolutions passed at shareholders’ meetings fall into two categories: (a) Ordinary Resolutions (which need more than 50% approval) (b) Special Resolutions (which need at least 75% approval)
Votes can be cast either by a show of hands or through a poll. Shareholders may appoint proxies to attend and vote on their behalf, as stipulated by Section 334 of CA 2016.
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Disclaimer All information in this article is only for the purpose of information sharing, instead of professional suggestion. Kaizen will not assume any responsibility for loss or damage. |
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