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What does entrenchment clause mean with regard to companies

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(Querist)
25 July 2014 what does entrenchment clause mean with regard to companies act 2013
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Nischit Sanghavi

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Nischit Sanghavi (Expert)
25 July 2014 The 2013 Act introduces the entrenchment provisions in respect of the articles of association of a company. An entrenchment
provision enables a company to follow a more restrictive procedure than passing a special resolution for altering a specific clause
of articles of association. A private company can include entrenchment provisions only if agreed by all its members or, in case of a
public company, if a special resolution is passed[section 5 of 2013 Act].
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Bhaskaran Chackrapani Warrier

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Bhaskaran Chackrapani Warrier (Expert)
25 July 2014 An entrenchment clause in law is a provision which makes certain amendments ,in clauses other than the entrenchment clause, either more difficult or impossible.
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