Powered by Lexis+®
Jurisdiction(s):
United Kingdom
CASE STUDY

“While we began looking at LexisNexis products primarily for cost saving, it quickly became more about customer service, ease of onboarding, ongoing training and breadth of resources available.”

Co-Op

Access all documents on Entrenched provisions

Entrenched provisions meaning

What does Entrenched provisions mean?
Clauses in a company’s articles of association that are intentionally harder to change than ordinary provisions, because extra conditions beyond passing a special resolution must be met. In the UK, the Companies Act 2006 permits “provision for entrenchment” in the articles. Typical conditions include a higher voting threshold, consent of a specified shareholder or class, or additional procedural steps. They are commonly used in joint venture company articles and other minority protection contexts where a party cannot on its own block special resolutions. Key features and limits: - Introduction post‑incorporation generally requires unanimous member consent; entrenchment (and its cessation) must be notified to Companies House. - Entrenched provisions cannot override mandatory statutory rights or the court’s powers (for example, they cannot prevent the statutory right to remove a director by ordinary resolution). - Shareholders’ agreements may mirror entrenched matters but cannot fetter the statutory power to amend articles; they operate only as contractual protections. Jurisdictions: - England & Wales, Scotland and Northern Ireland: position is under the Companies Act 2006 and is broadly consistent across the UK. - Ireland: while terminology differs, the Companies Act 2014 allows a company’s constitution to require more onerous procedures for amendment; filings and practice differ (no separate entrenchment notice).
Speed up all aspects of your legal work with tools that help you to work faster and smarter. Win cases, close deals and grow your business–all whilst saving time and reducing risk.

View the related News about Entrenched provisions

NEWS
LGPS (England and Wales) fairness consultation: backdated survivor benefit equalisation, death grant age cap removal, expanded pensionable leave and mandatory gender pensions gap reporting—implementation costs chargeable to funds

What is the background to the consultation? The consultation, ‘Local Government Pension Scheme in England and Wales: Access and fairness’, released on 15 May 2025, seeks to fundamentally enhance fairness in, and access to, the LGPS. It will examine five principal areas of concern: tackling survivor pensions and death grants reducing the gender pensions gap examining the high rate of opt-outs from the LGPS strengthening forfeiture provisions delivery of the McCloud remedy What is being proposed? The document explains that some proposals offer definitive resolutions to entrenched issues (for example, securing equal survivor benefit entitlement), while others begin longer-term work (including measures to reduce the gender pensions gap). We highlight two central reforms: revisions to survivor benefits and actions to improve the gender pensions gap. Survivor benefit entitlement Currently, survivors in same-sex marriages, survivors in same-sex civil partnerships, and female survivors of opposite-sex marriages and opposite-sex civil partnerships have pensions assessed on the member’s service from...

Read More Right Arrow

View the related Practice Notes about Entrenched provisions

PRACTICE NOTES
Company Constitutions under the Companies Act 2006: Articles of Association, Entrenchment, Objects, Memorandum, Resolutions and Amendments

What is a company's constitution? This Practice Note sets out what is meant by a company’s constitution in detail. It focuses on the core element of that constitution: the articles of association. It reviews the statutory definition under the Companies Act 2006, outlines the character of the articles and distils the typical provisions found in a company’s articles. The Practice Note also addresses entrenched terms within the articles and the importance of the memorandum of association...

Read More Right Arrow
PRACTICE NOTES
Company constitutions under the Companies Act 2006: articles and memorandum of association, model and bespoke articles, class rights, entrenchment, amendments and drafting for joint ventures, private equity and venture capital

This Practice Note offers an overview of the key legal and practical elements concerning a company’s constitution, and points to related commentary and precedents. What is a company’s constitution? Under section 17 of the Companies Act 2006 (CA 2006), a company’s constitution comprises: the company’s articles of association, and any resolutions and agreements impacting the constitution (see What are ‘resolutions and agreements’ affecting a company’s constitution? below) The CA 2006 definition is not exhaustive and, per sections 29–32, also encompasses other constitutional documents, including: the certificate of incorporation and any certificate on a change of name a current statement of capital (or, for a company limited by guarantee, a statement of guarantee) any court orders or enactments that modify the constitution or approve a compromise, arrangement, reconstruction or amalgamation Before 1 October 2009, the memorandum of association formed a core element of the constitution, but CA 2006 significantly curtailed its constitutional role (see...

Read More Right Arrow
PRACTICE NOTES
Amending Company Objects under the Companies Act 2006: Resolutions (including Duomatic), Entrenchment and Companies House Filings (United Kingdom)

This brief overview succinctly outlines the steps a company follows, in practice, when it adds, deletes or modifies its objects. For a fuller examination of the matters and procedures commonly involved in changing a company’s articles of association, refer to Practice Notes: A company’s constitution and Amending the articles of association for background and context. Objects of companies incorporated before 1 October 2009 Under the Companies Act 1985 (CA 1985) and earlier regimes, companies had to set out their objectives in the memorandum of association document. Those stated aims, termed the objects clause, limited the company’s purpose, the sorts of business it could undertake in law and the contracts it was lawfully able to enter into. From 1 October 2009, when the Companies Act 2006 (CA 2006) took effect, nearly all provisions in the memorandum of a pre‑existing company have, for statutory purposes, been regarded as part of its articles of association (capturing the objects clause within the memorandum). Accordingly, such companies retain restricted objects, as the objects...

Read More Right Arrow