Forgery
If in any transaction of business, the parties are involved in any type of forgery then they cannot take exception to this doctrine. If the representative of the company has forged any document and based on that document, he has made any transaction then the other person cannot take the defense of this doctrine as the company cannot be held liable in this case. The company in the case does not know about the transaction so it is wrong as per the general law if we are making them liable for the act that is done by the member of the company without their actual knowledge.
Doctrine of Indoor Management: Meaning, Exceptions and FAQs
The Doctrine of Indoor Management comes under the ambit of the Companies Act, 2013 and it protects the rights of any person who is performing any kind of transaction or business with the company. Section 2(20) of the Act explains the meaning of the Company as the association of persons according to the laws of the Companies Act, 2013. The Doctrine of Indoor Management protects outsiders against the actions done by the company. Any person entering into a contract must ensure that the transaction is authorized by the articles and memorandum of the company.
Key Takeaways:
- The act provides the company the status of an artificial person who can perform all the transactions in their name.
- The Memorandum of Association and Article of Association are the two important documents of a company that provide the scope of services of the company and the functioning of its internal team.
- These documents are essential for the smooth functioning of a company. When the company gets registered with the registrar, these documents become publicly available to the general public.
Table of Content
- What is Doctrine of Constructive Notice?
- What is Doctrine of Indoor Management?
- Exceptions to Doctrine of Indoor Management
- 1. Knowledge of Irregularity
- 2. Suspicion of Irregularity
- 3. Forgery
- 4. Acts outside Apparent Authority
- 5. Representation through Articles
- Conclusion
- Doctrine of Indoor Management- FAQs