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Microlesson · 5-min read

Extra-ordinary General Meeting — Calling of EGM [Section 100 + Rule 17]

# Section 100 — Calling of Extra-ordinary General Meeting (EGM)

## Definition

All general meetings other than AGMs are called Extra-ordinary General Meetings (EGMs).

## Three Ways an EGM Can Be Called

1. By the Board on its own initiative — Section 100(1)

2. By the Board on a requisition by qualifying members — Section 100(2)

3. By the requisitionists themselves if the Board fails to act — Section 100(4)

## 1. By the Board on Its Own — Section 100(1)

  • Board may call an EGM whenever it deems fit.
  • Proviso: EGM must be held at a place within India, except in the case of a wholly-owned subsidiary of a company incorporated outside India.

## 2. By the Board on a Requisition — Section 100(2) & (3)

Who can requisition?

Type of CompanyRequisitionist Threshold
Company with share capitalMembers holding (on date of receipt of requisition) at least 1/10th of paid-up share capital carrying right to vote
Company without share capitalMembers having at least 1/10th of total voting power of members entitled to vote

Requisition must:

  • Set out the matters for consideration
  • Be signed by requisitionists
  • Be sent to the registered office

Board's timeline:

  • Within 21 days of receipt of valid requisition → proceed to call meeting.
  • Meeting must be held on a day not later than 45 days from date of receipt.

## 3. By the Requisitionists Themselves — Section 100(4), (5), (6)

If Board does not, within 21 days, proceed to call meeting on a day not later than 45 days:

  • Requisitionists can themselves call and hold the meeting.
  • Outer limit: within 3 months from the date of requisition.
  • Held in the same manner as a Board-called meeting.
  • Reimbursement: reasonable expenses incurred → recoverable from the company → company deducts it from remuneration (Section 197) of defaulting directors.

## Rule 17 — Procedural Details for Requisitionists' EGM

1. Notice period: At least clear 21 days prior in writing/electronic mode.

2. Contents of notice: place, date, day, hour + business to be transacted.

3. Venue rule (Explanation): Must be held at the Registered Office or in the same city/town; on any day except National Holiday.

4. Special resolutions: if a resolution is to be proposed as special resolution, notice as per Section 114(2).

5. Signing of notice: All requisitionists OR one duly authorised in writing OR by electronic request attaching scanned signed requisition.

6. No explanatory statement needed under Section 102 — but requisitionists may state reasons.

7. Service of notice: to members in Register of Members within 3 days of valid requisition deposit.

8. Right to members' list: If meeting is not convened, requisitionists are entitled to a list of members (with addresses & shareholding) — company must provide it as on the 21st day from receipt of requisition, with subsequent changes, before expiry of 45 days.

9. Mode of notice: speed post / registered post / electronic mode.

10. Accidental omission to give notice or non-receipt by any member does not invalidate proceedings.

## Timeline Visual

  • Day 0: Valid requisition received
  • Day 21: Board's deadline to PROCEED to call meeting
  • Day 45: Latest date by which meeting must be HELD (if Board acts)
  • If Board fails: requisitionists can call within 3 months from Day 0

Worked example

### Example 1

Example 1: Members holding 12% of paid-up voting capital of ABC Ltd. deposit a valid requisition for an EGM on 1 April. By when must the Board proceed to call the meeting, and by when must it be held? ✅ Proceed by 22 April (within 21 days); meeting must be held on or before 16 May (within 45 days of 1 April).

### Example 2

Example 2: The Board ignores the requisition. The requisitionists themselves convene the EGM. By what date must they hold it? ✅ Within 3 months from 1 April — i.e., by 1 July.

### Example 3

Example 3: PQR Ltd. is a wholly-owned subsidiary of a UK-incorporated parent. Can it hold its EGM in London? ✅ Yes — the proviso to Section 100(1) permits EGMs of WOS of foreign companies outside India.

### Example 4

Example 4: Requisitionists called an EGM but inadvertently failed to send notice to one member. Is the meeting void? ❌ No — Rule 17(8) saves the meeting; accidental omission does not invalidate proceedings.

⚠️ Common exam mistakes

  • Confusing the 1/10th threshold — it is of paid-up voting share capital (not total share capital).
  • Calculating the 45-day deadline from Day 21 instead of from the date of receipt of requisition.
  • Thinking the Board must hold the meeting within 21 days — it only needs to proceed to call within 21 days. The meeting itself can be on any day within the 45-day window.
  • Forgetting that requisitionists' EGM has a venue restriction: registered office or same city/town only — not any place in India.
  • Annexing an explanatory statement under Section 102 to a requisitionists' notice — Rule 17(5) explicitly says none is required.
  • Believing the Board can refuse a valid requisition — it cannot. The only remedy is for the Board to either act, or face requisitionists' self-help under Section 100(4).
Bare-Act text Section 100 / Rule 17 · The Companies Act, 2013 read with Rule 17 of Companies (Management and Administration) Rules, 2014 · click to expand
Section 100(1): The Board may, whenever it deems fit, call an extraordinary general meeting of the company. Provided that an extraordinary general meeting of the company, other than of the wholly owned subsidiary of a company incorporated outside India, shall be held at a place within India. (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). (3) The requisition made under sub-section (2) shall set out the matters for the consideration of which the meeting is to be called and shall be signed by the requisitionists and sent to the registered office of the company. (4) If the Board does not, within twenty-one days from the date of receipt of a valid requisition in regard to any matter, proceed to call a meeting for the consideration of that matter on a day not later than forty-five days from the date of receipt of such requisition, the meeting may be called and held by the requisitionists themselves within a period of three months from the date of the requisition. (5) A meeting under sub-section (4) by the requisitionists shall be called and held in the same manner in which the meeting is called and held by the Board. (6) Any reasonable expenses incurred by the requisitionists in calling a meeting under sub-section (4) shall be reimbursed to the requisitionists by the company and the sums so paid shall be deducted from any fee or other remuneration under section 197 payable to such of the directors who were in default in calling the meeting.
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