What does entrenchment of articles exactly mean?

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Querist : Anonymous

Querist : Anonymous (Querist)

09 October 2017 If i want to incorporate public non-government company with 7 members then I have to file Spice Form. But I also want to change AOA all together means my company have its own interpretation, own share capital description and so on. whether it will be entrenchment of Articles or not ? Anyone please clarify it, it's very urgent.

CS Mitesh Mehta

CS Mitesh Mehta (Expert)
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09 October 2017 An entrenched/ entrenchment provision is provision that makes the current level of provisions more stringent/difficult to follow. The articles may contain provisions for entrenchment to the effect that specified provisions of the articles may be altered only if conditions or procedures as that are more restrictive than those applicable in the case of a special resolution are met or complied with.

However , regulations in the articles of entrenchment cannot override the provisions of the Companies Act, 2013 and rules made thereunder

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