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Microlesson · 5-min read

Extraordinary General Meeting (Section 100)

# Extraordinary General Meeting — Section 100

## Meaning

> An EGM is every general meeting of members other than the AGM.

It is convened to transact urgent business that cannot wait till the next AGM.

## Nature of Business

All business transacted at an EGM is treated as SPECIAL BUSINESS — therefore every notice must be accompanied by an Explanatory Statement under Section 102(1).

## Day & Time

  • Any day except National Holiday (Note: even a public/religious holiday or Sunday is permissible)
  • During business hours (9 AM to 6 PM)

## Place

TypePlace
Indian CompanyAnywhere in India
Wholly-owned subsidiary of foreign companyAnywhere in India OR outside India

## Who can call an EGM?

```

1. Board of Directors (suo-moto)

2. Board on requisition of Members

3. Requisitionists themselves (if Board fails)

4. National Company Law Tribunal (NCLT) [Sec 98]

```

### 1. EGM by Board (Suo-moto)

  • Board passes a Board Resolution
  • Issues notice of 21 clear days (or shorter notice with consent of members holding 95% of paid-up capital or voting power)
  • Exception: If quorum is not available because of other directors' absence from India, any director OR any 2 members can convene an EGM.

### 2. EGM by Members on Requisition (Board calls it)

Who can requisition (Section 100(2)):

  • Company having share capital: Members holding at least 1/10th of paid-up share capital carrying voting rights
  • Company without share capital: Members having at least 1/10th of total voting power

Rules for requisition:

  • Requisition must state matters to be considered
  • For more than one matter — eligibility threshold must be met independently for each matter
  • Concurrence of one joint-holder = concurrence by all

Board's Duty:

  • Within 21 days of receipt — call the meeting giving at least 21 days' notice
  • Meeting date must be within 45 days of receipt of requisition

### 3. EGM by Requisitionists (Board Fails)

  • If Board fails to call within 21 days OR fails to hold within 45 days, the requisitionists themselves may call the meeting
  • Must be called in the same manner as the Board would call
  • Held within 3 months of the date of deposit of requisition
  • Expenses: All reasonable expenses to be reimbursed by the company to requisitionists. If not reimbursed, the company may deduct from sums due to defaulting directors.

### 4. EGM by Tribunal (Section 98)

Where it is impracticable to:

(a) call a meeting of a company (other than AGM) in any manner in which meetings are to be called, OR

(b) hold or conduct the meeting in the manner prescribed in the Act / AOA

Tribunal may, on its own motion or on application of any director / member entitled to vote, order a meeting with such ancillary or consequential directions as it thinks fit — including a direction that even one member personally present shall constitute the quorum.

Worked example

### Example 1

Example 1 — Requisition Threshold: PQR Ltd has paid-up capital of ₹10 crore. Members holding ₹90 lakh paid-up value requisition an EGM. Solution: Required holding is 1/10th = ₹1 crore. The requisitionists hold only ₹90 lakh, which is below threshold. Requisition is invalid; Board not bound to call.

### Example 2

Example 2 — Timeline: Valid requisition deposited on 1st June 2026. Solution: Board must call meeting within 21 days (by 22 June) giving 21 days' notice, and the meeting must be held within 45 days of deposit (by 15 July 2026). If Board fails, requisitionists may hold the meeting themselves on or before 31 August 2026 (3 months from deposit).

### Example 3

Example 3 — Multiple Matters: 10 members holding 12% requisition for Matter A; 8 of those same members (holding 8%) want to also include Matter B. Solution: For Matter A — valid (12% ≥ 10%). For Matter B — only 8% backing, below threshold — invalid. Board obliged to consider only Matter A.

⚠️ Common exam mistakes

  • Treating any business at EGM as ordinary — all business at EGM is special.
  • Believing the 95% consent for short notice is 95% of those present — it is 95% of all members entitled to vote.
  • Confusing the 21-day Board action window with the 45-day outer limit for holding the meeting — both must be met.
  • Forgetting that the 1/10th threshold must be independently met for each matter when multiple matters are requisitioned.
  • Applying Section 100 to AGM-related defaults — Section 100 deals only with EGMs; Section 97 deals with failure to hold AGM.
Bare-Act text Section 100 · The Companies Act, 2013 · click to expand
100. (1) The Board may, whenever it deems fit, call an extraordinary general meeting of the company. (2) The Board shall, at the requisition made by,— (a) in the case of a company having a share capital, such number of members who hold, on the date of the receipt of the requisition, not less than one-tenth of such of the paid-up share capital of the company as on that date carries the right of voting; (b) in the case of a company not having a share capital, such number of members who have, on the date of receipt of the requisition, not less than one-tenth of the total voting power of all the members having on the said date a right to vote, call an extraordinary general meeting of the company within the period specified in sub-section (4).
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