Doctrine of indoor management

                                                        Doctrine of indoor management

The doctrine of indoor management is an exception to the rule of doctrine of constructive notice. When a person dealing with the company it is assumed that the person reads the memorandum and article of association whether he reads or not and he is not required to do further inspection regarding the internal matter of the company.

The outsider dealing with the company are entitled to assume that as far as the internal proceedings of the company are concerned everything has been regularly done, he is not required to examine whether the internal proceeding have been compiled with or not. They can presume that all is being done regularly.


exception to the doctrine of indoor management:
                                                                                Relief on the ground of  "indoor management" can't be claimed by an outsider dealing with the company in the following circumstances:-

1. where the outsider's had knowledge of irregularity.
2. no knowledge of memorandum and articles.
3. forgery.
4. negligence.
5. the doctrine of indoor management does not apply where the question is in regard to the very    existence of an agency.
6. this doctrine is also not applicable where a pre-condition is required to be fulfilled before company itself can exercise a particular power.