What is a General Body Meeting?
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General Body Meeting (GBM)
General Body Meeting is a meeting of shareholders of the company and being the most powerful body of the company, the General Body Meeting takes all the decisions related to the working of the company.
These meetings are held annually, therefore the meeting is also called as Annual General Meeting (AGM) of a company.
These General Body Meeting or Annual General Meetings also discusses among the other issues, performance of the company in previous accounting period and also finalizes the accounts.
The Annual General Meeting approves the dividend declared by the company and also have right to lower the dividend.
The period between two AGM’s should not exceed the period of 18 months.
What is Extraordinary General Meeting (EGM)?
The companies often call General Body Meeting in between the two Annual General Meetings (AGM’s) to take important decisions, such meetings are termed as Extraordinary General Meeting.
The proposal to declare a bonus issue or rights issue and the ratios thereof are put forward to the Annual General Meeting or Extraordinary General Meeting and approved by the shareholders of the company.
Bottom Line
I hope now must have got light on What is General Body Meeting (GBM), Annual General Meeting (AGM) and also the Extraordinary General Meeting (EGM).
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Hi, I’m Managing Director at Gurpreet Saluja Financial Services where I help my investors to invest in mutual funds and achieve their financial goals. I’m also a Value Investor and here I write about Personal Finance & Investing.