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 doctrine of indoor management.
- Protects outsiders dealing with the company from internal irregularities.
Step 2: Compare with other doctrines.
- Constructive notice protects the company, not outsiders.
- Lapse doctrine and Top management doctrine are not relevant here.
Step 3: Conclude.
- Doctrine of Indoor Management applies.