Description
- An E-Extraordinary General Meeting (EGM) is a virtual meeting conducted by a company to address urgent or significant matters that require shareholder approval, outside of the Annual General Meeting (AGM). It enables shareholders, directors, and stakeholders to discuss and vote on critical issues remotely via digital platforms, ensuring compliance with the Companies Act 2016 while providing convenience and accessibility.
GOV Department
- Suruhanjaya Syarikat Malaysia (SSM) / Companies Commission of Malaysia
License Name (Malay)
- Mesyuarat Agung Luar Biasa Elektronik (E-EGM)
Details
- E-EGMs are called to address specific matters such as amendments to the company constitution, approval of mergers, appointment/removal of directors, or issuance of shares.
- Notifications and relevant documents must be sent to shareholders at least 14 days before the meeting.
- A secure and interactive platform must be used to facilitate participation, voting, and discussions.
- Minutes of the meeting must be documented and submitted to SSM if required.
Important Rules
- Shareholders must receive sufficient notice, detailing the purpose, agenda, and meeting link for the E-EGM.
- Equal access to the virtual meeting platform must be provided to all participants.
- Voting must be conducted transparently and securely, ensuring every shareholder’s vote is accurately recorded.
- Decisions made in the E-EGM must comply with the Companies Act 2016 and the company’s constitution.
- Proper records and resolutions passed in the E-EGM must be filed with SSM, if applicable.
Compound & Punishment
- Failure to conduct an E-EGM for critical matters as per the Companies Act 2016 may result in:
- Fines up to RM50,000 for the company and its directors.
- Resolutions passed without proper procedures may be deemed invalid and subject to legal challenges.
- Mismanagement of the meeting, including inadequate notice or technical issues, may lead to regulatory penalties or disputes from shareholders.
Advisor
Jeffrey Eh Hao Yih , Director
Jeffrey has been providing expert guidance for businesses dealing with ongoing challenges. With his expertise, he aids clients in strategic business planning, streamlining operations, and enhancing productivity. Additionally, Jeffrey offers diverse business technology services to help digitize traditional businesses effectively.
Commonly Asked Questions
An E-EGM is an Extraordinary General Meeting held online through video conferencing or an electronic platform instead of a physical meeting.
It allows shareholders to discuss and vote on urgent or special matters virtually.
A company needs an EGM for important decisions such as director changes, constitution amendments, or urgent approvals. Conzlab assists businesses in preparing and conducting EGM properly according to company law.
Companies can hold an EGM online using secure platforms for notice, voting, and resolutions. Conzlab offers a full E-Extraordinary General Meeting solution to run your EGM virtually with compliance and support.
An E-EGM is called to decide on special business matters that cannot wait until the next Annual General Meeting (AGM).
Examples include:
- Change of company name
- Appointment or removal of directors
- Amendment of company constitution
- Approval of major transactions
An E-EGM can be called by:
- The board of directors, or
- Shareholders holding at least 10% of the paid-up capital (under Section 310 of the Companies Act 2016).
Yes. The Companies Act 2016 and SSM’s guidance notes allow companies to conduct virtual or hybrid EGMs, as long as meeting and voting procedures are followed properly.
E-AGM: Held once a year to approve regular matters (accounts, directors, auditors).
E-EGM: Held anytime when special or urgent decisions need shareholder approval.
Yes. All resolutions passed in a properly conducted E-EGM are legally valid and binding, the same as those passed in a physical meeting, once recorded and filed with SSM if required.
- Must ensure proper notice and meeting link is sent to all members
- Must have valid quorum online
- Must record attendance, resolutions, and votes clearly
- The Company Secretary must ensure compliance with the Companies Act 2016
- Notice of EGM (sent at least 14–21 days before)
- Agenda and proposed resolutions
- Proxy form for those unable to attend
- Meeting minutes and voting results prepared by the Company Secretary