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: Understand the Indoor Management Rule.
- Safeguards external parties engaging with the company against internal procedural issues.

Step 2: Compare with related rules.
- Constructive notice protects the company, not external parties.
- The Lapse and Top Management rules are inapplicable here.

Step 3: Conclusion.
- The Indoor Management Rule is applicable.