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: Define Constructive Notice.
- Constructive notice is the legal principle that all parties interacting with a company are presumed to be aware of its memorandum and articles of association.

Step 2: Differentiate from Other Doctrines.
- The indoor management doctrine safeguards external parties engaging with a company from internal procedural errors (distinct from constructive notice).
- The lapse doctrine concerns the termination of shareholder rights following specific occurrences.

Step 3: Conclusion.
- The provided statement pertains explicitly to the doctrine of constructive notice.