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Doctrine of Indoor Management

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HomeBrud.gifCompany LawBrud.gifDoctrine of Indoor Management

The Doctrine of Constructive Notice is subject to the Doctrine of Indoor Management. According to this Doctrine, an outsider who deals with the company is required to see that the authority of dealing had been given by articles to the person with whom the outsider is dealing but he is cannot be assumed to do any more. The Doctrine evolved out of Royal British Bank v Turquand (186) 6 EP & B 327.

Every outsider is entitled to assume the regularity of the internal proceedings unless he has the knowledge of irregularity.

Special situations

  • Cases where director's title to office is defective
  • Failure to hold properly convened meetings.
  • Disregard of limitations on the director's authority

Exceptions to the Doctrine

  • Notice of irregularity
  • Suspicious circumstances inviting inquiry
  • Forgery
  • No knowledge of the content of articles

Related Cases / Recent Cases / Case Laws

  • Royal British Bank v Turquand (186) 6 EP & B 327

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