Aditi Sharma explains what the introduction of entrenchment provisions means for minority shareholder rights
The dictionary definition of entrenchment includes establishing an attitude, habit or belief so firmly that change is difficult or unlikely.
Entrenchment is not defined under the Companies Act, 2013, but the spirit of section 5(3) of the act suggests that the idea may have been borrowed from the UK Companies Act 2006, where entrenchment was designed to provide statutory limits on majority rule in the context of modifying the articles of association (AOA) of a company. Such a provision did not find a place in India’s Companies Act, 1956.
You must be a
subscribersubscribersubscribersubscriber
to read this content, please
subscribesubscribesubscribesubscribe
today.
For group subscribers, please click here to access.
Interested in group subscription? Please contact us.
你需要登录去解锁本文内容。欢迎注册账号。如果想阅读月刊所有文章,欢迎成为我们的订阅会员成为我们的订阅会员。
Aditi Sharma is a manager in the corporate legal group at ICICI Bank in Mumbai. The views expressed in this article are personal and do not reflect the official position of ICICI Bank.