Question

All those who are dealing with the company are expected to know the contents of the Memorandum and Articles of Association. This is called________.

• A. Doctrine of indoor management
• B. Doctrine of ultra vines
• C. Constructive notice
• D. Doctrine of merger

Answer 1

The correct option is A Doctrine of indoor management

The Doctrine of Indoor Management lays down that persons dealing with a company having satisfied themselves that the proposed transaction is not in its nature inconsistent with the memorandum and articles, are not bound to inquire the regularity of any internal proceeding. In other words, while persons contracting with a company are presumed to know the provisions of the contents of the memorandum and articles, they are entitled to assume that the provisions of the articles, they are entitled to assume that the officers of the company have observed the provisions of the articles.