Doctrine of Indoor Management and Prospectus Rules
Classified in Law & Jurisprudence
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Doctrine of Indoor Management
The doctrine of indoor management allows outsiders who are dealing with company to assume that as far as the internal proceedings of company are concerned, everything has been properly done. This limitation to doctrine of constructive notice is known as doctrine of indoor management or Turquand rule.
*Royal British Bank vs Turquand 1856
Exceptions:
- Knowledge of irregularity
- Negligence
- Forgery
Prospectus
Is a document issued by the public company in order to invite the public to make offers for shares and debentures of the company. Any document described or issued as a prospectus or any notice, circular, ad, or other document inviting offers from public for subscription or purchase of any securities of a body corporate... Continue reading "Doctrine of Indoor Management and Prospectus Rules" »