The doctrine of indoor management says that an outsider contracting with a company can rely on the company's internal authorizations and actions being valid, even if they were not properly or duly authorized according to the company's internal documents. It protects outsiders from a company denying the authority of its own officials. The doctrine is based on the fact that outsiders do not have knowledge of a company's internal operations. Memorandums and articles of association are public documents that provide constructive notice of a company's contents to outsiders, who are presumed to have read and understood them.

1. DOCTRINE OF INDOOR
MANAGEMENT
PRESENTED BY- BISHAL
SAHA

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

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