2. INTRODUCTION
The Doctrine of Indoor management
says that if a person enters into a
contract with a company he has the
rights to inquire into the correctness of
the contract since Article and
Memorandum of Association are
public documents.
It is invoked by the person.
3. BASIS FOR DOCTRINE OF
INDOOR MANAGEMENT
What happens internal to a company
is not a matter of public knowledge. An
outsider can only presume the
intentions of a company, but not know
the information he/she is not privy to.
If not for the doctrine, the company
could escape creditors by denying the
authority of officials to act on its
behalf.
4. DOCTORINE OF
CONSTRUCTIVE NOTICE
Memorandum of Association and
Articles of Association are two most
important documents needed for the
incorporation of a company.
Section 610 of the companies Act,
1956 provides that the memorandum
and articles when registered with
Registrar of Companies become
public documents and then they can
be inspected by any one on payment
of a nominal fee.
5. Every person dealing with the company
is deemed to have a constructive notice
of the contents of the memorandum and
articles of the company.
An outsider dealing with the company is
presumed to have read the contents of
the registered documents of the
company.
The further presumption is that he has
not only read and inspected the
documents but has also understood
them fully in the proper sense. This is
known as the rule of constructive notice.
So, the doctrine or rule of constructive
notice is a presumption operating in
favour of the company against the