Question

"Every person dealing with the company is presumed to have read the memorandum and articles of associations and understood them in their true perspective, irrespective of the fact whether one has actually read them or not." The underlying doctrine in this regard is known as

• A. Doctrine of Indoor Management
• B. Doctrine of Constructive Notice
• C. Doctrine of Lapse
• D. Doctrine of Outdoor Management

Hint:

Constructive notice = "You are assumed to know the company's rules, whether you read them or not."

Answer 1

The Correct Option is B

Step 1: Grasp Constructive Notice.
- Constructive notice posits that all parties interacting with a company are aware of its memorandum and articles of association.
Step 2: Doctrine Comparison.
- Indoor management safeguards external parties engaging with the company from internal procedural errors, differing from constructive notice.
- Lapse doctrine concerns the termination of shareholder rights following specific occurrences.
Step 3: Summarize.
- The provided explanation explicitly describes the constructive notice principle.