An EGM occurs for various reasons and one of them includes the potential removal of one of the executives of a company. This might be due to the company receiving claims that the chairperson or another executive of the company abusing their position, forcefully removing another executive without valid reasons.
After sufficient evidence and support have been received by various stakeholders on whether the chairperson’s actions are to be valid or invalid, the EGM is held to decide whether he should remain in that position or be removed for misconduct.
An official request must be made by company members and shareholders who either possess sufficient portion of the company’s share capital or voting rights before an EGM in Malaysia can be held. Once it is confirmed that the EGM will be held, members of the company’s board of director are to provide notice others about the details of the EGM.
The request should contain details about the objective of the proposed EGM and it is to be submitted in a form of a document that has been signed by all relevant personnel that wish to conduct the EGM. Once the request is made, the directors will decide if the EGM will be carried on or denied.
It should be noted that no directorial decision of a company can be made without the existence of a director.