What does entrenchment clause mean with regard to companies
This query is : Resolved
25 July 2014
what does entrenchment clause mean with regard to companies act 2013
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].
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].
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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