Power Of The Courts To Question The Legality Of The Shareholder’s Requisition Calling For An Extraordinary General Meeting (EGM): A Comparison Between The Uk And The Indian Scenario

Ms. Sneh Suman, Advocate-on-Record, Supreme Court of India, Senior Panel Advocate for the State of Uttar Pradesh in the Supreme Court

ABSTRACT

This paper compares the evolution of Company Law in the UK and India, specifically focusing on the power of Courts/Tribunals to intervene in Shareholder's right to call an Extraordinary General Meeting (EGM). In the UK, the transition from the Companies Act 1985 to the Companies Act 2006 altered provisions related to EGMs on members' requisition (Section 368 to Section 972). Section 303 of the 2006 Act addresses Members' power to require directors to call a general meeting.

Under the Indian Companies Act, 2013, Section 100 empowers shareholders to requisition an EGM, specifying the matters for consideration. If the Board doesn't call the EGM within 21 days, shareholders can convene the meeting independently within three months. This analysis explores judicial interpretations, emphasizing the evolving landscape of shareholder rights in calling Extraordinary General Meetings. The focus of this analysis is on the power of Courts/Tribunals to interfere with the Shareholder's right to call an Extraordinary General Meeting (EGM).