The difference between Ordinary General Assembly and Extraordinary General Assembly in Companies in Egypt.

The shareholders supervise the management of the company through the general assembly. It is held upon the invitation of the company's chairman. Moreover, it is divided into an Ordinary General Assembly (OGM) and Extraordinary General Assembly (EGM).

The OGM and EGM have different competence.

The Ordinary General Assembly (OGM) is held to:

·      Approve the financial statements.

·      Approve the Board of Directors’ report regarding the company's activity.

·      Approve the distribution of dividends.

·      Decide on the matters proposed by any of the board members or shareholders.

·      Approve the appointment and removal of the board member.

·      Supervise and release the board member from liability.

The Extraordinary General Assembly (EGM) is held to:

·      Increase or decrease the authorized or issued capital of the Company.

·      Approve the sale of an asset from the company's main production lines.

·      Amend any of the Articles of Association of the company.

· Consider the liquidation or continuation of the company if its losses amount to half of the capital.

To be noted that voting quorums and the attendance of the Ordinary General Meeting and Extraordinary General Meeting are determined in the Articles of Association of the company in accordance with the Companies Law No. 159 of 1981.

It is also noteworthy that the meeting of the ordinary general assembly shall be held at least once every financial year within the three months succeeding the end of the financial year of the company.