CLAT PG Exam > CLAT PG Notes > Company Law > Provisions for Entrenchment
Provisions for Entrenchment | Company Law - CLAT PG PDF Download
Entrenchment in the Companies Act, 2013
Entrenchment, as introduced in the Companies Act, 2013 under Section 5(3), refers to certain provisions in the Articles of Association that cannot be changed easily through a special resolution. The concept of entrenchment is about making certain rules so firmly established that altering them becomes difficult.
Definition of Entrenchment
- The term "entrench" means to set an attitude or belief so firmly that change is unlikely. In this context, an entrenchment clause in the Articles makes certain amendments challenging or impossible.
Question for Provisions for EntrenchmentTry yourself: What does the term "entrench" mean in the context of the Companies Act, 2013?View Solution
Introduction of Entrenchment Provisions
- Entrenchment provisions can only be included in a company's articles during the incorporation process.
- Alternatively, they can be added through a special resolution in the case of a public company.
- For a private company, all members must agree to the entrenchment provisions.
The document Provisions for Entrenchment | Company Law - CLAT PG is a part of the CLAT PG Course Company Law.
All you need of CLAT PG at this link: CLAT PG
|
51 docs
|
FAQs on Provisions for Entrenchment - Company Law - CLAT PG
| 1. What is the concept of entrenchment in the Companies Act, 2013? |  |
Ans. Entrenchment in the Companies Act, 2013 refers to provisions within a company's articles of association that make it difficult to amend certain rules or rights. These provisions ensure that specific decisions or rights, particularly those that protect minority shareholders or maintain the structure of the company, cannot be changed without a higher threshold of approval, thus providing stability and protection against abrupt changes.
| 2. How are entrenchment provisions introduced in a company’s articles under the Companies Act, 2013? | |
Ans. Entrenchment provisions can be introduced in a company's articles of association by including specific clauses that require a higher voting majority for amendments. This can be done at the time of incorporation or through a special resolution in an extraordinary general meeting, ensuring that any change to these provisions is safeguarded against arbitrary decisions.
| 3. What are the advantages of having entrenchment provisions in a company? | |
Ans. The advantages of entrenchment provisions include enhanced protection for minority shareholders, increased stability in governance, and prevention of hostile takeovers. These provisions can help maintain the original vision of the founders and ensure that critical decisions cannot be easily overturned, thus fostering a sense of security among stakeholders.
| 4. Are there any limitations to entrenchment provisions in the Companies Act, 2013? | |
Ans. Yes, there are limitations to entrenchment provisions. While they provide protection, they cannot be used to contravene the fundamental rights under the Companies Act or to act against public interest. Additionally, entrenchment provisions themselves can be amended, but such amendments require a higher threshold of approval, making them less flexible.
| 5. What role do entrenchment provisions play in corporate governance? | |
Ans. Entrenchment provisions play a significant role in corporate governance by ensuring that essential rights and governance structures are not easily altered. They promote accountability and protect the interests of shareholders, particularly minority shareholders, by requiring a stronger consensus for any major changes, thus contributing to more stable and responsible corporate management.
Related Exams
About this Document
|
Nov 23, 2024 Last updated |
Document Description: Provisions for Entrenchment for CLAT PG 2024 is part of Company Law preparation.
The notes and questions for Provisions for Entrenchment have been prepared according to the CLAT PG exam syllabus. Information about Provisions for Entrenchment covers topics
like Entrenchment in the Companies Act, 2013, Definition of Entrenchment, Introduction of Entrenchment Provisions and Provisions for Entrenchment Example, for CLAT PG 2024 Exam. Find important definitions, questions, notes, meanings, examples, exercises and tests below for Provisions for Entrenchment.
Introduction of Provisions for Entrenchment in English is available as part of our Company Law
for CLAT PG & Provisions for Entrenchment in Hindi for Company Law course.
Download more important topics related with notes, lectures and mock test series for CLAT PG
Exam by signing up for free. CLAT PG: Provisions for Entrenchment | Company Law - CLAT PG
Description
Full syllabus notes, lecture & questions for Provisions for Entrenchment | Company Law - CLAT PG - CLAT PG | Plus excerises question with solution to help you revise complete syllabus for Company Law | Best notes, free PDF download
Information about Provisions for Entrenchment
In this doc you can find the meaning of Provisions for Entrenchment defined & explained in the simplest way possible. Besides explaining types of
Provisions for Entrenchment theory, EduRev gives you an ample number of questions to practice Provisions for Entrenchment tests, examples and also practice CLAT PG
tests
|
Explore Courses for CLAT PG exam
|
|
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
Related Searches
Provisions for Entrenchment | Company Law - CLAT PG
,Sample Paper
,Exam
,Semester Notes
,shortcuts and tricks
,mock tests for examination
,Previous Year Questions with Solutions
,Viva Questions
,Free
,study material
,MCQs
,Objective type Questions
,Extra Questions
,Summary
,practice quizzes
,Important questions
,ppt
,video lectures
,Provisions for Entrenchment | Company Law - CLAT PG
,past year papers
,Provisions for Entrenchment | Company Law - CLAT PG
;
Additional Information about Provisions for Entrenchment for CLAT PG Preparation
Provisions for Entrenchment Free PDF Download
The Provisions for Entrenchment is an invaluable resource that delves deep into the core of the CLAT PG exam.
These study notes are curated by experts and cover all the essential topics and concepts, making your preparation more efficient and effective.
With the help of these notes, you can grasp complex subjects quickly, revise important points easily,
and reinforce your understanding of key concepts. The study notes are presented in a concise and easy-to-understand manner,
allowing you to optimize your learning process. Whether you're looking for best-recommended books, sample papers, study material,
or toppers' notes, this PDF has got you covered. Download the Provisions for Entrenchment now and kickstart your journey towards success in the CLAT PG exam.
Importance of Provisions for Entrenchment
The importance of Provisions for Entrenchment cannot be overstated, especially for CLAT PG aspirants.
This document holds the key to success in the CLAT PG exam.
It offers a detailed understanding of the concept, providing invaluable insights into the topic.
By knowing the concepts well in advance, students can plan their preparation effectively.
Utilize this indispensable guide for a well-rounded preparation and achieve your desired results.
Provisions for Entrenchment Notes
Provisions for Entrenchment Notes offer in-depth insights into the specific topic to help you master it with ease.
This comprehensive document covers all aspects related to Provisions for Entrenchment.
It includes detailed information about the exam syllabus, recommended books, and study materials for a well-rounded preparation.
Practice papers and question papers enable you to assess your progress effectively.
Additionally, the paper analysis provides valuable tips for tackling the exam strategically.
Access to Toppers' notes gives you an edge in understanding complex concepts.
Whether you're a beginner or aiming for advanced proficiency, Provisions for Entrenchment Notes on EduRev are your ultimate resource for success.
Provisions for Entrenchment CLAT PG Questions
The "Provisions for Entrenchment CLAT PG Questions" guide is a valuable resource for all aspiring students preparing for the
CLAT PG exam. It focuses on providing a wide range of practice questions to help students gauge
their understanding of the exam topics. These questions cover the entire syllabus, ensuring comprehensive preparation.
The guide includes previous years' question papers for students to familiarize themselves with the exam's format and difficulty level.
Additionally, it offers subject-specific question banks, allowing students to focus on weak areas and improve their performance.
Study Provisions for Entrenchment on the App
Students of CLAT PG can study Provisions for Entrenchment alongwith tests & analysis from the EduRev app,
which will help them while preparing for their exam. Apart from the Provisions for Entrenchment,
students can also utilize the EduRev App for other study materials such as previous year question papers, syllabus, important questions, etc.
The EduRev App will make your learning easier as you can access it from anywhere you want.
The content of Provisions for Entrenchment is prepared as per the latest CLAT PG syllabus.
|
© EduRev
|
Education Revolution
|
Follow Us
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup