Entrenchment
This query is : Resolved
10 June 2014
Dear sir,
what is the meaning of entrenchment under the companies act 2013 in articles of the company
Thanks in advance
what is the meaning of entrenchment under the companies act 2013 in articles of the company
Thanks in advance
CA Sumit Arora
(Expert)
10 June 2014
Dear K. Upendra,
Companies Act, 2013 has provided the entrenchment provision. I will explain it to you through an example.
Suppose quorum for meeting is 10 members, articles may provide for a higher number, let say 15 members but articles can not provide number less than 10 members. In brief articles can not override the act.
Companies Act, 2013 has provided the entrenchment provision. I will explain it to you through an example.
Suppose quorum for meeting is 10 members, articles may provide for a higher number, let say 15 members but articles can not provide number less than 10 members. In brief articles can not override the act.
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