… you need to organize a meeting and convene your shareholders for a decision on one or more specific points during the business year
… you want to fully comply with statutory formal requirements
Unlike the annual or ordinary shareholders’ meeting, which is held within six months after the end of the business year, an extraordinary shareholders’ meeting is held during the business year and is not mandatory.
It is convened only when a company needs approval from its shareholders on one or several specific items, such as a change of domicile or the issuance of new shares.
The extraordinary shareholders’ meeting is convened by the board of directors with an invitation setting out the agenda and the items to be put to the vote, as well as the proposals of the board of directors. The shareholders can only vote validly on matters formally set out in the invitation.
Further, the shareholders must receive the invitation at least 20 days before the actual meeting. It thus makes sense to ensure that the invitation document fully complies with form and timing requirements.
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