Annual General Meeting (AGM)
According to s. 111 of the Companies Ordinance, each company has to convene its first annual general meeting within 18 months since its incorporation. For the coming annual general meetings, no more than 15 months in between the coming one and the previous one held.
Under the Table A of the Companies Ordinance, the date, time and venue of the general meeting is determined by the Board of Directors.
At the annual general meeting, shareholders have the right to raise questions to directors about the financial statement or position of the company. In addition, the businesses of declare dividend payment, re-election of directors, appoint auditors etc, are also included in the agenda of an annual general meeting.
Extraordinary General Meeting (EGM)
All general meetings other than an annual general meeting are called an extraordinary general meeting. It can be convened by directors, shareholders, auditors, court, bankruptcy officer or liquidator of the company.
Under Table A of the Companies Ordinance, all businesses to be dealt with at the annual general meeting can be adopted in form of resolutions in writing by all shareholders of the company.
Clause 55 of Table A of Companies Ordinance provides that on condition that the necessary quorum (shareholder or member) for attending an annual general meeting presents, no business should be dealt with at the annual general meeting. On condition that the necessary quorum presents throughout the meeting can the businesses of the meeting can be dealt with.
According to s. 114A (1)( c ) of the Companies Ordinance, unless provided otherwise, two shareholders or its representative(s) acting on their behalf present at a meeting constituted a quorum.
According to s. 114A (1)( d ) of the Companies Ordinance, unless provided otherwise, Clause 57 of Table A of Companies Ordinance provides that, usually Chairman of the Board will be elected as Chairman and take the chair of the general meeting. If no Chairman of the Board, the Board members will elect among themselves to act as the Chairman of the meeting.
Clause 67 of Table A of Companies Ordinance provides that a partly paid-up share capital holder has no voting right at the general meeting.
In general, a motion is passed by way of hands, unless someone demands by poll (Clause 60 of Table A). If by way of hands, each person present in person will have one vote, it has no relationship with their shareholding (Clause 64 of Table A).