Question

Which of the following lays down that the affairs of the company are conducted perfectly consistent with the articles of association of the company, consequently the persons dealing with them are not to be affected by any irregularity which might have taken place in the management of the company?

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

Hint:

Indoor management doctrine = "outsiders are not affected by internal irregularities."

Answer 1

The Correct Option is A

Step 1: Doctrine of Indoor Management Explained.
- Safeguards external parties engaging with a company against internal procedural flaws.
Step 2: Doctrine Comparison.
- Constructive notice benefits the company, not external parties.
- Lapse and Top Management doctrines are inapplicable.
Step 3: Conclusion.
- The Doctrine of Indoor Management is applicable.