Hurdles in requisitioning EGMs point to need for changes to law, say experts

RECENT developments suggest legislative changes are needed to smooth the path for shareholders requisitioning an extraordinary general meeting (EGM), market watchers told The Business Times.

Their comments come in the wake of a legal dispute between USP Group and its shareholders who had sought an EGM to remove directors of the company.

The High Court ruled last month that USP Group’s requisitioning shareholders did not have standing to requisition such a meeting, pursuant to section 176 of the Companies Act (CA).