The doctrine of Indoor Management protects outsiders who are unaware of the correctness of the internal proceedings of a company.
Justify the following statement:
The doctrine of Indoor Management protects outsiders who are unaware of the correctness of the internal proceedings of a company.
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- The doctrine of Indoor Management states that a person entering into a contract with the company need not inquire whether the company has followed the internal processing.
- It is assumed that the company acts as per the Memorandum of Association and Articles of Association.
- Because certain information which is internal to a company cannot be known to outsiders.
- So the doctrine of Indoor Management protects the interest of the outsider when the act is based on the Memorandum of Association and Articles of Association.
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